Last Updated Saturday, April 19 2014
Print

Mergers and Acquisitions in the Printing Supply Chain



There are transactions occurring all the time in the printing supply chain, particularly on the printing level, as printers and key suppliers continue to merge.



By David Savastano, Editor



Published November 27, 2013
Related Searches: ink efi
Last month, R. R. Donnelley & Sons Company and Consolidated Graphics, Inc. jointly announced that RR Donnelley will acquire Consolidated Graphics for approximately $620 million, plus the assumption of Consolidated Graphics' net debt. The combined companies would have annual sales of more than $11 billion.

Understandably, this acquisition drew a tremendous amount of attention, and rightfully so, as it combines two of the largest printers in North America. According to Printing Impressions 2012 Top 400 list of U.S. and Canadian printers, RR Donnelley is the largest printer, and Consolidated Graphics is the seventh largest.

This is not an isolated occurrence, though. In reality, there are transactions occurring all the time in the printing supply chain, particularly on the printing level, as printers and key suppliers continue to merge, looking for synergies or just to get out of the business.

The ink industry, interestingly enough, has pretty much avoided these types of mergers, even though the same economic impacts are creating tensions.

Here are a few examples of key moves in the packaging industry:
• Chesapeake Services Limited and Multi Packaging Solutions, Inc. (MPS) announced they have entered into a definitive agreement to merge the two businesses. The combined print-based specialty packaging companies will have sales of more than $1.4 billion, employ more than 7,000 people throughout the world, and operate from more than 50 manufacturing facilities on three continents.
• Crown Holdings, Inc. entered into an agreement to acquire Mivisa Envases, SAU, a leading Spanish manufacturer of two- and three-piece food cans and ends, from certain investment funds managed by affiliates of The Blackstone Group L.P., N+1 Mercapital and management, in a cash transaction valued at €1.2 billion. Mivisa, based in Murcia, Spain, is the largest food can producer in both the Iberian Peninsula and Morocco, with sales of $722 million for the audited fiscal year ended June 30, 2013,
• Sealed Air Corporation announced it has entered into a definitive agreement to sell its rigid medical packaging business to a private equity firm, Mason Wells Buyout Fund III, L.P. Sealed Air expects to receive proceeds of $125 million from the sale.
• Amcor signed an agreement to acquire Detmold Flexibles, a privately-owned Australian flexibles packaging business with annual sales of $55 million, for $50 million.
• Meanwhile, in two separate announcements, Ball Corporation announced that it will cease production at the company's Danville, IL, steel aerosol packaging manufacturing plant during the second half of 2014. CCL Industries Inc. announced that it plans to permanently close its Canadian aerosol manufacturing operation in the first half of 2014, and completing no later than mid-2015.

There is much attention paid to the challenges facing the publication and commercial printers, and there are acquisitions occurring frequently. It is interesting to also note that the packaging side of the printing business also is seeing its share of changes, despite having a better future outlook.

Last month, R. R. Donnelley & Sons Company and Consolidated Graphics, Inc. jointly announced that RR Donnelley will acquire Consolidated Graphics for approximately $620 million, plus the assumption of Consolidated Graphics' net debt. The combined companies would have annual sales of more than $11 billion.

Understandably, this acquisition drew a tremendous amount of attention, and rightfully so, as it combines two of the largest printers in North America. According to Printing Impressions 2012 Top 400 list of U.S. and Canadian printers, RR Donnelley is the largest printer, and Consolidated Graphics is the seventh largest.

This is not an isolated occurrence, though. In reality, there are transactions occurring all the time in the printing supply chain, particularly on the printing level, as printers and key suppliers continue to merge, looking for synergies or just to get out of the business.

The ink industry, interestingly enough, has pretty much avoided these types of mergers, even though the same economic impacts are creating tensions.

Here are a few examples of key moves in the packaging industry:
• Chesapeake Services Limited and Multi Packaging Solutions, Inc. (MPS) announced they have entered into a definitive agreement to merge the two businesses. The combined print-based specialty packaging companies will have sales of more than $1.4 billion, employ more than 7,000 people throughout the world, and operate from more than 50 manufacturing facilities on three continents.
• Crown Holdings, Inc. entered into an agreement to acquire Mivisa Envases, SAU, a leading Spanish manufacturer of two- and three-piece food cans and ends, from certain investment funds managed by affiliates of The Blackstone Group L.P., N+1 Mercapital and management, in a cash transaction valued at €1.2 billion. Mivisa, based in Murcia, Spain, is the largest food can producer in both the Iberian Peninsula and Morocco, with sales of $722 million for the audited fiscal year ended June 30, 2013,
• Sealed Air Corporation announced it has entered into a definitive agreement to sell its rigid medical packaging business to a private equity firm, Mason Wells Buyout Fund III, L.P. Sealed Air expects to receive proceeds of $125 million from the sale.
• Amcor signed an agreement to acquire Detmold Flexibles, a privately-owned Australian flexibles packaging business with annual sales of $55 million, for $50 million.
• Meanwhile, in two separate announcements, Ball Corporation announced that it will cease production at the company's Danville, IL, steel aerosol packaging manufacturing plant during the second half of 2014. CCL Industries Inc. announced that it plans to permanently close its Canadian aerosol manufacturing operation in the first half of 2014, and completing no later than mid-2015.

There is much attention paid to the challenges facing the publication and commercial printers, and there are acquisitions occurring frequently. It is interesting to also note that the packaging side of the printing business also is seeing its share of changes, despite having a better future outlook.



blog comments powered by Disqus