CJK Group Closing Sheridan Madison (WI) Book Printing Plant, Impacting 116 Workers

The final chapter has been written for the Sheridan Madison — formerly Webcrafters — book manufacturing plant located at 2211 Forden Ave. in Madison, Wisconsin. The closure will impact 116 workers (104 hourly and 12 salary positions) at the non-union plant, with phased layoffs beginning April 13 and its closure on June 28, 2024, according to a notice sent by CJK CHRO Dale Tepp to the Wisconsin Department of Workforce Development, Dislocated Worker Unit, and the mayor of Madison.

CJK Group acquired the assets of the more than 155-year-old Webcrafters on Nov. 1, 2017. At that time, Webcrafters employed 270 workers at two facilities. It catered to the educational publishing community as a manufacturer of textbooks, workbooks, teacher and student guides, and related educational support materials. (In a much larger transaction, CJK Group purchased Hunt Valley, Maryland-based The Sheridan Group in April of that same year, which catapulted CJK's journal, magazine, catalog, and book printing capacity. Click here to read about that transaction.)

Prior to its acquisition by CJK Group, Webcrafters had been purchased in 1959 and led by its former CEO, John Frautschi — a 2000 Printing Impressions Printing Industry Hall of Fame inductee — for many years. He passed away March 9, 2017, at age 87. (Click here for the article about John Frautschi's accomplishments that was written following his passing.)

Webcrafters had been struggling to compete and had been downsizing the past several years prior to its assets being acquired by the CJK Group. In 2015, Webcrafters management announced  it was reducing its workforce at the two facilities by at least 20% after a drop in business from a major customer. This came on the heels of another company downsizing of 25% in 2012, or about 133 positions.

Webcrafters management then consisted of Kip Frautschi, chairman; Jac Garner, CEO; John Filsinger, COO; and Judy Peirick, VP of human resources, who all departed the organization after the deal with CJK was finalized.

LSC Deal Catapults CJK Group into Very Top Tier

The same day that Wisconsin state officials were notified about the Webcrafters plant closure, CJK Group announced the blockbuster acquisition of Kodi Collective from LSC Communications, which had been owned by private equity firm Atlas Holdings. The acquisition comprised five publication and catalog offset printing plants and three digital printing facilities located in Maple Grove, Minnesota; Lebanon Junction and Danville, Kentucky; Pontiac, Illinois; Liberty, Missouri; Las Vegas, Nevada; Post Falls, Idaho; and Mahwah, New Jersey.

The transaction did not include book manufacturer Lakeside Book Co., which is still owned and operated by Atlas Holdings as a separate company. Nor did it comprise LSC's Enru logistics, postal optimization, and co-mailing services platform, which will continue to be offered by CJK to Kodi customers. The Enru rebranding had brought together the capabilities and footprint of several former LSC acquisitions, including the Clark Group, Fairrington Logistics, and RR Donnelley Logistics & Co-mail Services.

Warrenville, Illinois-based LSC Communications, MCLC Div., was ranked No. 8 on the most recent Printing Impressions 300 ranking (Click here to download the complete PI 300 list) of the largest printers in the U.S. and Canada, as ranked by annual sales. It reported most recent fiscal year sales of $1.105 billion. CJK Group was ranked No. 11 with a most recent fiscal year estimated sales figure of $580 million, and Lakeside Book Co. reported $1.143 billion for its most recent fiscal year revenues. With the LSC Kodi acquisition, the CJK Group presumably is now approaching the $1.75 billion to $2 billion in annual sales range.

CJK Group CEO Chris Kurtzman has consolidated several printing industry market segments in relatively short order. And it appears his appetite for M&A transactions may not yet be satisfied.

What Else Comprises the CJK Group?