Direct Marketing Printer IBS Direct Acquired by Investment Group as Foundation for Larger Platform
IBS Direct, a longtime direct marketing printer and services provider based in King of Prussia, Pa., has been acquired by a group of private investors led by managing partner Manny Ortiz. Logan Marketing Group (LMG), of Lumberton, N.J., purchased IBS Direct from its owner and CEO, George Schnyder, who has operated IBS Direct for 47 years. Terms of the deal were not disclosed.
IBS will continue to operate in its existing, 100,000-sq.-ft. location with its current senior management team led by Ted Sherwin, IBS Direct president. Sherwin has been with IBS for seven years. He formerly served as CEO and president of Webcraft Technologies when it was owned by Big Flower Press Holdings and, prior to that, was the COO at Harte-Hanks Direct Marketing. Ortiz also has more than 30 years of direct marketing printing experience, having been the founder and chairman of Pennington, N.J.-based Direct Group before it was eventually acquired by private equity firm SV Investment Partners.
Sherwin reveals that IBS will serve as the base for LMG to build a larger direct marketing platform, both through organic and M&A growth. "We'll stay on course, looking for consolidation opportunities through possible acquisitions and tuck-ins," he says. IBS itself has acquired five companies in the past seven years, mostly tuck-ins. The company was ranked No. 97 on the 2017 Printing Impressions 400 ranking of the top 400 printers in the U.S. and Canada, reporting most recent fiscal year sales of $55 million (click here to access the complete PI 400 list).
As a provider of direct mail packages, collateral and free-standing inserts (FSIs), IBS specializes in high-quality, high-color jobs and has developed an expertise in providing special textures and coatings. "We have no intention of getting into volume mail," Sherwin adds, pointing out that IBS doesn't want to compete with agency customers that also oversee their direct marketing clients' mailing programs.
Catering to the insurance, financial, banking, credit card and pharmaceutical markets, IBS houses eight roll-to-roll UV web presses and two heatset web offset presses with in-line finishing capabilities. IBS has yet to adopt production inkjet printing capabilities, but management continues to closely monitor the technology for future adoption, according to Sherwin.
An LMG subsidiary company, Innovative Fulfillment & Mail, based in Lumberton, N.J., will join with IBS Direct in expanding marketing services under the LMG umbrella. Primarily a fulfillment operation that caters to the art market, Sherwin notes that LMG is looking to eventually move Innovative's printing, framing, mailing and fulfillment operation to a larger location closer to IBS.