It’s about Time – June 2014 M&A Activity
In a transaction that appears more strategic than predatory, two commercial printing/mailing companies in the Seattle area with combined revenues in excess of $50 million, DCG West and CCS Printing, announced that they are joining forces, moving into a new 140,000 square-foot facility, and re-branding the new entity as DCG ONE. In another separate transaction in the Pacific Northwest region, Wright Business Graphics, based in Portland, Oregon acquired Sunset Press in Kent, Washington. Both companies sell only to the trade, and the combined operations reportedly will have $55 million in revenues.
Despite recent positive signs in the commercial printing segment, the “tuck-in” is not completely dead, and commercial printing companies continue to seek out opportunities to absorb the sales of smaller companies. Cedar Graphics in Hiawatha, Iowa tucked-in the sales of local competitor The Brandt Company which itself ceased operations. In a deal put together by my firm, the NAPL Business Advisory Group, J.S. McCarthy of Augusta, Maine, purchased the customer base and certain assets of Printech, a commercial printer located in Stamford, Connecticut.
German printing press manufacturer Heidelberg is not about to be outdone by its compatriot KBA’s foray last year into the market for manufacturing presses designed primarily to produce packaging. As reported in The Target Report deal log for December 2013, KBA purchased Italian press manufacturer Flexotecnica, which makes flexographic printing presses used for printing flexible packaging. KBA also announced at that same time its purchase of Kammann Maschinenbau, the German manufacturer of screen printing presses used to print directly onto glass containers. Heidelberg jumped into the flexo fray in June, announcing that it has acquired Gallus, the Swiss manufacturer of narrow-width flexographic presses. The battle for press supremacy, still ongoing and fought brilliantly by KBA in the offset press arena where Heidelberg once reigned supreme, moves to round two with flexographic presses.