EFI Walks the Digital Fashion Runway - July 2015 M&A Activity
Visant Corporation, owner of several print-centric companies including yearbook publisher Jostens, exited its holding in Phoenix Color. Headquarted in Maryland, Phoenix Color specializes in book printing, including cover components. The printing company focuses on products that require full color printing throughout, such as children’s illustrated books. The company also prints folding cartons, labels and commercial printing products that may require specialized decorating techniques such as foil stamping and embossing.
The buyer of Phoenix Color is ALJ Regional Holdings, a public company traded on the OTC Pink sheets, and which has other investments in business process outsourcing and flooring products. ALJ reportedly is paying $90 million for Phoenix, or just slightly north of 1 times the acquired revenues of $88 million. Based on increased EBITDA that ALJ expects of $22.9 million, and assuming that there is not much synergy between its holdings, we can infer that the deal was valued at approximately 3.9 times EBITDA.
In addition to the acquisition of the manufacturer of digital textile printing machines, EFI simultaneously announced the acquisition of Israel-based Matan Digital Printers. The company manufactures a line of UV-ink super-wide high-speed grand format printers used to produce large indoor and outdoor graphic banners and wraps. With the wide profile, high-speed roll-fed and in-line finishing capabilities of the acquired lines, EFI is positioning the Matan line as a lower-cost volume alternative to its high-end Vutek line of digital UV flatbed printers. The acquired company also produces smaller machines used to digitally print specialty items such as traffic signs and license plates.
OKI Data Corporation, which you may remember as the manufacturer of those early (and noisy) PC-compatible dot matrix printers, acquired Seiko I Infotech, a manufacturer of wide format inkjet printers for the graphics market, as well as toner-based wide format printers for the architectural, engineering and construction market.