Turmoil in the Garden of Meredith - September 2015 M&A Activity
Inland, located in La Crosse, Wisconsin, made its first move out of the Midwest region with its acquisition of Monet Graphics, a label and specialized coupon printer located in Downington, Pennsylvania. The acquisition adds to Inland’s existing considerable presence in the label segment, including cut & stack labels, blow-mold and in-mold labels, shrink products, and pressure-sensitive labels.
In the corrugated segment, Atlantic Packaging Products, located in Ontario, purchased corrugated box manufacturer Skybox Packaging located in Mansfield, OH. The investment group behind the Crown Paper Group was back in acquisition mode, purchasing Montebello Container Corporation which has three facilities all located in Southern California. The acquired company produces corrugated sheets that other companies convert into finished products, as well as also manufacturing corrugated boxes in its own facilities. This is the second transaction for Crown, having made its first acquisitions earlier this year (see The Target Report – February 2015) including the purchase of Port Townsend Paper which operates a mill that produces the kraft paper used in Crown’s other companies and the foundation for its stated goal of building an integrated packaging company.
Also active in the paperboard and kraft paper production segment, Hood Container acquired KPAQ Industries, which operates a mill in St. Francisville, Louisiana. Hood purchased its first mill, located in Tennessee, from International Paper in 2012. In a move towards vertical integration, Hood acquired Stronghaven in 2014, an Atlanta-based designer and manufacture of packaging and retail displays made with corrugated materials.
Commercial and Direct Mail Printing
The transactional scene for commercial printing establishments remains oddly quiet as it has been for the past several months, contrary to the widely accepted notion that consolidation within this segment is very active and is driving down the number of commercial printing establishments. While we don’t disagree in the long run, and we expect that the pace of acquisitions in the commercial segment is likely to increase, it appears that many prospective sellers are sitting on the sidelines waiting.