The Roll-Up Returns (to Commercial Printing) – September 2014 M&A Activity
It’s been a long downhill slide for roll-up activity in the commercial printing industry. The major players have either exited the field (Consolidated Graphics), partially disintegrated (Nationwide Argosy, né Nationwide Graphics), or struggled with their own lack of clear strategic direction (Cenveo, né Mail-Well). That void may soon be filled by regional players that are stretching beyond the boundaries of their original core operation. In contrast to those aforementioned major league teams that were fueled by shares issued in the public markets, the new draft of contenders are energized and coached by private equity funds flush with cash and the ability to borrow at very favorable rates from eager lenders.
OneTouchPoint, a roll-up headquartered in Chicago, appears ready to make the leap to the majors. The company was sold in September to ICV Partners, a private equity fund committed to “take OneTouchPoint and its platform to the next level.” Originally named TouchPoint Print Solutions, the company was founded only seven years ago with support from Huron Capital Partners, its previous owners. OneTouchPoint now employs over 950, with acquired operations in Wisconsin, Ohio, Texas and Colorado. Although the company had only one appearance on our deal log in the past three years with its acquisition of Ginny’s Printing in Austin, Texas in December, 2011, I expect we’ll see more action from the new owners.
The Mittera Group, headquartered in Des Moines, Iowa, has been on a roll, consolidating printing companies in its backyard in Iowa. Last year, the company began expanding geographically with its acquisition of Wisconsin Web Offset. The company just announced another acquisition of J.B. Kenehan, a commercial printer with two web and sheetfed plants in Wisconsin. The company reports that this latest acquisition brings the combined sales to $135 million with 750 employees.
The Garvey Group has been a repeat acquirer on our deal log, most recently acquiring retail display printer Troyk printing in Franklin, Michigan this past May. Especially interesting was Garvey’s acquisition of Schawk’s wide format division in Los Angeles last year, which gives this Midwest-centric collection of companies the ability to claim itself a national player. (See The Target Report - July, 2013 for more).