Industry M&A Activity : Deals Are in Full Bloom
A look at the news pages of Printing Impressions makes one thing abundantly clear: the M&A machine is running wide open at the moment. Major players are buying major players, mid-sized firms are merging to offer more products and services, smaller printers are aligning in order to survive, and companies of all statures are picking the carcasses of firms that cannot survive under any circumstances.
Here are 10 of the more significant deals completed during a four-month stretch carrying into the first quarter of 2012:
- Quad/Graphics makes a splash with the acquisition of marquee Dallas firm Williamson Printing.
- Ann Arbor, MI, book printers Edwards Brothers and Malloy merge, creating the sixth-largest book manufacturer.
- Illinois-based TouchPoint Print Solutions acquires Ginny’s Printing of Austin, TX.
- Pemcor Printing of Lancaster, PA, adds a pair of Keystone State firms in the $5 million to $6 million range in Typecraft Press and Laser Imaging Systems.
- A pair of Minneapolis firms joined forces, with Imagine! Print Solutions picking up DigiGraphics.
- Charlotte, NC-based Classic Graphics nets the assets of Harperprints Inc., of Henderson, NC.
- Ovation Graphics, Fort Worth, TX, buys virtually all of the assets of Dallas-based Branch-Smith Printing.
- Colorfx, Des Moines, IA, tacks on Demco Printing, creating an $85 million performer.
- Rohrer Corp., of Wadsworth, OH, nets Hogue Printing Solutions of Mesa, AZ.
- Dodd Communications and Franklin Communications combine their Florida operations.
What can we take away from some of these deals? According to John Hyde, senior vice president of the National Association for Printing Leadership (NAPL) and head of NAPL’s Mergers and Acquisitions Advisory Team, M&A is a highly inclusive phenomenon at the moment. That isn’t likely to change soon, either.
“Companies of all sizes are pursuing M&A,” he says. “Companies under $2 million in sales are increasingly interested in becoming part of a company with greater capabilities. Owners are facing the reality that most strategic buyers aren’t interested in taking on a going concern—only customers.”