Consolidation--Moguls of M&A
PI: What percentage of company presidents have stayed on after the acquisition?
Thompson: Because we emphasize the continuity of management as a part of our initial evaluation of a company, it is very rare for a plant president not to remain in place after the acquisition.
We feel strongly that these businesses should be run on a day-to-day basis at the local level (our decentralized philosophy) and so we rely heavily on the management that has achieved the results that convinced us to buy the company in the first place.
PI: What is the ultimate objective; where are you taking these companies, direction-wise?
Thompson: The ultimate objective is to build value for our shareholders. By making these companies a part of a larger organization that is focused on continuous improvements, we believe we will make them better and make them larger contributors to the value of the overall organization. Over time, providing customers with the best value in printing services will result in achieving an exceptional value for our shareholders. The ability and willingness to invest in new technologies to provide a broad and diverse product line will allow Mail-Well to better serve its customers.
Joe R. Davis, chairman and CEO
HOUSTON-based Consolidated Graphics is coming off a successful acquisition campaign, having paid $61.8 million in cash in the fiscal year that ended March 31, 1999. In the process, the company also issued approximately 1.5 million shares of common stock.
PI: What types of companies are targeted?
Davis: Consolidated Graphics seeks strong, well-managed commercial printing companies with $2 million to $35 million in annual revenues.
Our companies have a very service-oriented philosophy, so we are interested in acquiring printers that share this service focus. Today, our company has operations in 25 states and we are negotiating with companies in all regions of the United States.