INDUSTRY CONSOLIDATORS -- Economy Ends M&A Frenzy
Jensen: Kelmscott considers itself an "operating company" that happens to be acquisitive. Our company was founded on a customer-centric philosophy, meaning we have built the company around customer service, as opposed to "buying what was available." Each acquisition has been strategic and has satisfied a regional or national customer service objective.
We have integrated each acquisition such that we enhance the individual company's performance while leveraging its effect on the entire system of Kelmscott companies. The net effect is that we are building customer relationships across a broad spectrum of services. We believe this is what is required to build a successful and lasting communications business.
Reilly: The current condition gives us some more time to do that (integrate previously acquired companies). Much of the focus of Mail-Well in the past six months has been to work on integrating these companies and to improve our capabilities to compete as one.
Davis: One of our strengths is that we don't change the companies. We buy good companies; we like to keep the management in place and we attempt to improve those companies. We don't make wholesale integration changes to the companies we acquire. That is one of the reasons for our success. We certainly make available to our companies our economies of scale, our management development program and we recruit at the college campus level.
We make these types of services available to the individual companies. We don't go in and change the individual companies. One of the things that we're doing today—since the slow down in acquisitions gave us some breathing room to do this—we are very aggressively developing some national accounts for our companies. A lot of companies now want to consolidate their purchasing. We offer the best chance to do that.