World Color to Acquire Century Graphics
The acquisition is World Color's 18th since 1993. The acquisition follows closely on the heels of its purchase of Magna Graphic, an $11 million digital prepress service provider based in Lexington, KY, in early January.
The acquisition of Magna Graphic was the first World Color completed since raising approximately $275 million in a public offering of common stock in October of last year.
Magna Graphic operates a 30,000-square-foot facility, which primarily serves the textbook market. No layoffs are expected among Magna's 110 employees.
In conjunction with this acquisition, World Color has agreed to purchase four new MAN Roland Rotoman web offset presses for the World Color Book Services facilities in Taunton, MA, and Versailles, KY. Installation will begin this quarter.
The acquisition of Magna Graphic and the new presses demonstrate World Color's commitment to expanding its presence in the textbook market. Burton says World Color has "chosen to focus on the education market niche as it presents significant growth opportunities."
He notes several "positive influences affecting the education industry," including a "projected five-year population growth of compulsory and secondary school students" and the "expanding role of the United States as a major exporter of educational materials."