PIA/GATF Summit Looks at Industry M&As
BOCA RATON, FL—The recent PIA/GATF Graphic Arts Industry Summit drew 225 paid attendees to hear merger and acquisition strategies and case studies, and to honor industry leaders.
Though the conference theme of "Buy, Sell, Merge, Grow" was directed toward the attendees, Ray Roper, PIA's president, and George Ryan, GATF's president, were paying close attention and taking their own notes. The consolidation of their organizations continues. Formal discussions were begun last November by the management and boards of both the PIA and GATF.
The two organizations may join together, but the term "merger" is inappropriate. GATF is classified as a 501-C-3 educational foundation, and PIA is a 501-C-6 trade association. A legal consolidation would allow both classifications to continue, structuring each entity to best fulfill its stated mission.
The boards of directors passed resolutions endorsing the proposed consolidation and directing the staffs to prepare documents necessary to make it legal. No time frame was set; the actual consolidation could take years to implement effectively.
Industry observers indicate that benefits of the consolidation would include elimination, or certainly reduction, of duplicate programs; improved administrative economics; and more effective marketing.
Robert Johnson, chairman and CEO of Bowne & Co., had plenty to say about effective marketing in his keynote address. "Successfully Managing in a Mature Marketplace" was based upon the strategic positioning and direction anticipated for Bowne in the next few years.
Bowne's core competency is fulfilling clients' time-sensitive and security information printing needs through increasingly proprietary technical skills.
In fiscal year 1996, Bowne generated sales of $500 million and profits of more than $42 million. The company's plans for the year 2000 forecast sales exceeding $900 million, with 30 percent of that coming from new business—such as from fulfilling corporate customers' "outsourcing" of commercial printing.
Johnson also announced a $20 million investment in a new longer-run, financial printing facility in South Bend, IN. Mutual fund prospectuses, being initiated from Bowne's Fundsmith proprietary software, are examples of the longer-run products to be produced on the plant's web presses.