Business Management - M&A

I think too many of us in this industry are lulled into thinking that because we have had relatively low inflation in the past decade, that it does not have an impact. Wrong!

Once upon a time, printing and packaging could get by without being data-driven, and so could M&As. This was because in those days, a lot of dealmaking took place locally. If you were a printer in Rochester, NY, for example, you probably knew personally all of the likely candidates in the Rochester area. If you were an M&A consultant, a well-thumbed Rolodex was your most frequently used tool. Personal relationships are still important in M&As, but the geography is bigger.

If you've decided to grow your business by acquisition, it follows that you're thinking like a buyer. But, can you think like a seller as well? You'll need to move nimbly from one mindset to another as you strategize the purchase that you want to make. Your own goals will be clear enough, but it will be harder to attain them if you can't also inject yourself into the thought process on the seller's end.

In this new editorial series for Printing Impressions, New Direction Partners will offer guidance in a business strategy that we believe every printer needs to be thoroughly acquainted with: the planning and execution of successful mergers and acquisitions. It's a complex subject and, in columns and blogs to come, we'll detail many of the actions that take place when two printing companies decide to come together as a whole that's greater than the sum of the parts.

In my experience, when differences about selling price and deal structure come up in M&A negotiations, they typically aren’t small. They can be reconciled, but doing that requires flexibility and seriousness on both sides. In M&As, learning through mistakes benefits nobody if the wisdom comes only after the deal has died. It's always better to grasp the opportunity with a clear-eyed understanding of the facts going in.

An exclusive distribution agreement has been forged between RBP Chemical Technology and Pacific Graphic Supply in Ontario, CA, to distribute RBP products in California. This exclusive distribution agreement will provide timely, personalized service and support to a wide range of commercial printers within the California territory, from smaller print shops to larger enterprises.

Calling the M&A market “hot to trot” would be an exaggeration at this point, but there are good reasons to think that fewer players are suffering from cold feet. Interest in transactions is picking up. Banks are more open to proposals for funding M&As.

conVerd will become a part of FiberMark’s wide- and grand-format inkjet business in which FiberMark’s wide-format print product line will adopt the conVerd brand name. Paul Paulette, the current owner and president of conVerd, will join FiberMark as vice president and general manager of the new conVerd/FiberMark business unit.

Packaging manufacturer RockTenn is set to acquire Simpson Lumber's Kraft Paper Mill located in Tacoma, WA, for approximately $343 million. The mill operates a 55-megawatt green biomass fuel cogeneration facility that was completed in 2009 and sells electricity under a long-term contract.

International Paper (IP) announced that distribution solutions businesses xpedx and Unisource Worldwide will merge under the terms of a definitive agreement that will result in the creation of a new publicly traded company.Upon the expected completion of the merger in mid-2014, the new company will have projected annual revenues in the $9 billion to $10 billion range, and will have about 9,500 employees across more than 170 distribution centers in North America.