CGX Looking To Sell?
HOUSTON—The printing industry’s leader in M&A activity, long known for its strong balance sheet, could soon be on the block.
In an effort to bolster shareholder value, Consolidated Graphics (CGX) has retained UBS Investment Bank in an advisory capacity as it explores strategic alternatives, including a sale of the company.
According to Chris Colville, executive vice president and CFO, CGX’s board of directors has decided, based on advice of investment banks, that the best interest of the shareholders would most likely be achieved in a transaction.
“We are a very large printing company, but only a small-cap public company,” Colville told Printing Impressions. “With the increasing burdens of being a relatively small company...it’s harder to create shareholder value by just ‘staying the course.’ The timing is right, given today’s robust capital markets and a generally good economy.”
Colville dispelled the rumor that Chairman and CEO Joe Davis had been pondering retirement, but noted that any sale would likely result in a transition of executive power.