Consolidated Graphics: The Dukes of Digital
Of course, the company is perhaps most noted for its exploits in the transactional arena. Cohen, CGX's executive vice president of mergers and acquisitions, notes that several companies have expressed an interest in joining his organization, and a good many of these candidates find themselves in some level of financial distress. This has enabled CGX to become skilled in the art of creative deal structuring, which can entail negotiating terms with banks and creditors. Its most recent deal was the asset acquisition of The Hickory Printing Group in Hickory, NC, in May, which will add about 3 percent to CGX's revenues.
"Our acquisition strategy isn't directly tied to geography or acquiring new capabilities," Cohen notes. "We look for the best companies, with the best leadership and the best customers, no matter where they happen to be. We generally don't look at acquisitions as a way to bolster our technological offerings. But, if a company has a product offering that we find desirable, of course it is a factor in our evaluation of that opportunity."
Forward Thinking
Joe Davis loves the prospects that the future holds. He has no plans to retire, and is proud of the fact that his Leadership Development Program is churning out executive-level professionals year in and year out. CGX's M&A platform is as robust as any, buoyed by ready access to capital and ready to stretch into a 27th state, though geography is not a requisite. Most importantly, CGX has a committed and educated sales force able to sell across different platforms and to bring innovative ideas into the fold.
For a major printing conglomerate, it boasts many of the traits shown by companies a mere fraction of CGX's size. But don't let that fool you.
"It doesn't matter how big we get," Davis remarks. "The day we start thinking like a big company is the day we're going to die. We've got to stay nimble, stay flexible. We can't get caught up in big company bureaucracy. If we do that, we're going to lose what makes us so special."PI
