Consolidation--Moguls of M&A
The commercial printing industry's leading consolidators share their criteria for the art of the deal.
BY ERIK CAGLE
When one of our industry's acquisitions is among the top financial stories on "CNN," it becomes readily apparent that the world of commercial printing consolidation is heating up rather than slowing down.
The highly anticipated deal that saw Quebecor Printing purchase one of the industry's leading consolidators, World Color Press, for $1.4 billion in cash and stock on July 12, was met by a lot of oohs and aahs. It was an impressive post-Fourth of July fireworks display, to be sure, even though many in the industry had been speculating such a transaction would occur.
Whether the deal shifts the tectonic plates of the commercial printing industry or not remains to be seen, but at least it must be viewed as a large golden nugget in the ongoing consolidation gold rush that's taking place throughout the industry.
Printing Impressions contacted several of the most prominent companies in the consolidation arena to solicit their ideal of how to choose a prospective company—who is targeted, how is a value arrived at, where are the cost savings, as well as their overall objectives.
The list of players are, to a degree, incomplete and, unfortunately, such viable candidates as Big Flower Press, Master Graphics, Applied Graphics Technologies and Champion Industries either chose not to participate or did not respond to repeated inquiries. The following participating companies, however, provide an accurate representation of the state of consolidation in commercial printing.
Bruce Thompson, senior vice president of corporate development
WHILE the Englewood, CO-based company does not disclose the terms of its acquisitions, it is known that more than $175 million has been invested in company purchases in 1999 and the figure for 1998 easily topples the $200 million mark.