A Tale of Two Cities, the Best of Multiples, the Worst of Multiples – April 2014 M&A Activity
There was hope in the newspaper business in April. Minnesota billionaire, Glen Taylor, made an offer to buy the Minneapolis Star Tribune. The sale has been widely reported as a very positive event for the paper and the community, since Taylor has clearly stated that his goal is to keep a quality independent newspaper in his home state. Although he expects the paper to be self-supporting, Taylor was quoted saying that the purchase “is not the best deal I ever got into.” He should know, since his fortune has been built primarily from specialty printing companies, beginning with his first acquisition when he bought Carlson, printer of stationery and wedding invitations. As reported in the paper he will likely soon own, Taylor added wisdom that rings true for printers of all types, “I’m in a lot of printing areas and they are all difficult business areas. I have just found out that if you’re the best in that area, then you can do quite well.”
Goldman Sachs’ Merchant Banking group and Koch Industries got together in a vote of confidence on the future of print, partnering to acquire Flint Group, the global supplier of inks and printing supplies. Vomela Specialty Company of St. Paul, Minnesota, acquired the Bureau of Engraving, printer of point-of-purchase displays and labels. Boutwell, Owens and Co, a Massachusetts printer of folding cartons, blister cards and other packaging acquired label printer Guynes Printing of Texas, located in El Paso.
Continuing the trend of outsourcing print in the newspaper industry, the Lansing State Journal in Michigan announced that it is closing its printing plant in Delta. The paper, along with several other titles that were printed there, will be printed by Advance Central Services Michigan in one of its three facilities. Following on the recent acquisition of Chesapeake by Multi Packaging Solutions, the company will be closing its packaging plant in Evansville, Illinois. Bankruptcy filings in the industry were less than the spike we reported in March, with three small companies filing for liquidation in Chapter 7, and no new Chapter 11 filings.
|2014 April - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries|
Deal Party #1