In addition to breaking news and feature-length stories, Ink World publishes scores of online exclusive articles every year. This content is sent out to digital subscribers each week, and cannot be found in our printed editions (for more information on subscribing, click here). This year, the staff at Ink World has decided to track its most popular online exclusive articles each quarter; in December, we will announce the most popular online exclusive of the year.

To kick off the year, here are the top three online-only stories from the first quarter of 2015:

3. Kustom Group Acquires New Product Lines from Lubrizol (By David Savastano, Editor)
The announcement that Kustom Group acquired the principal assets of Lubrizol’s Wax Compound, Ink Vehicle and Lithographic Overprint Business shakes up a segment of the industry that already has undergone sizable transformations in recent years.

In the deal, which was completed in late December 2014, Kustom Group acquired Lubrizol’s formulations and processing equipment. Kustom Group will continue to supply, service and support Lubrizol customers.

“Kustom’s mission statement has been to make for our customers those things that they do not want to make for themselves,” said David Aynessazian, VP, technical and marketing at Kustom Group. “Generally, wax compounds, oil-based ink vehicles and overprints fall into that category. Kustom has been making oil-based ink vehicles and overprints for decades, so adding the Lubrizol formulations to our stable of similar products continues to broaden and deepen our offerings to our customers to give them the continued confidence that if they are speaking to Kustom Group about their needs then they are at the right place.”

Jerry Trauth, product manager ink applications for Kustom Group, noted that in addition to emphasizing Kustom’s commitment to the ink industry, adding Lubrizol’s product lines will offer advantages in terms of purchasing, bringing in new products and new ideas.

“Our industry continues to change and the piece of the pie for every ink maker is getting smaller and extremely competitive,” Trauth said. “These acquisitions will continue to help strengthen and stabilize our purchasing efforts. Just as important, we hope it continues to show Kustom’s long-term commitment to all of our ink customers, and especially the oil-based ink market, which has seen its share of suppliers discontinue product lines in recent years.

“We have found with our Varchem and Lawter vehicle acquisitions that we discover new raw materials and new suppliers, which ultimately brings new tools and new ideas to Kustom Group,” Trauth noted. “In the past, these new tools and ideas seem to bring excitement to our employees, which has a very positive effect on everything we do.

“We are hopeful that this ‘one stop shopping’ approach will help our customers more easily control their own raw material inventory,” Trauth added. “Kustom is experienced at manufacturing and servicing specialty product lines which may require smaller batch size, including bucket pack out options. We hope this experience equates to responsive service, and a consistent, quality product for our customers.” 

Aynessazian said that selling wax compounds are a new area for Kustom Group, although the company has manufactured these compounds for in-house use.

“As for the wax compounds, although Kustom Group has not generally offered these products to the market in any quantity before now, we have made product for our own use for some time,” Aynessazian noted. “Also, some within Kustom have made wax compounds when working for other companies in their past. So when we were approached by Lubrizol with the opportunity to purchase this business, including their state-of-the-art manufacturing equipment, we were very excited.

“Lubrizol and Carroll Scientific are both names that are synonymous with technology and quality as is Kustom Group, so we felt this would be a good fit,” Aynessazian added. “We are extremely pleased to add trade names such as Top Flite, Thermol, Protech and Polytech, which are industry standards, to Kustom’s basket of well known names like Lithomaster, Kentucky Shine, Strike Thru, Sandy Feel, Kustom Kure and many others.”

“Wax compounds are a key ingredient in offset inks, especially on the oil-based side,” Trauth added. “By adding wax compounds to Kustom’s other lines of vehicles and additives, it will allow our customers to reduce the number of POs and more easily fill each truck to reduce freight cost.”

In terms of the overprint industry, Trauth said that Kustom divides overprints, or top coats, into two categories: overprint varnishes, which are applied through the inking unit of a press; and coatings, which are applied through a coating unit attached at the end of the press, or applied off line.

“Kustom carries a full product line for both applications,” Trauth said. “We carry oil-based, UV and aqueous overprint varnishes, and UV and aqueous coatings. We also carry UV silkscreen products, and aqueous and UV coatings for flexo.

“Our recent focus has been on specialty UV and aqueous coatings such as sandy feel, soft feel, textured, raised, and many other tactile products,” Trauth added. “Kustom also has developed many effect pigment coatings such as angle dependent, pearl, glitter, sparkle and others. There is also interest in compliance products, such as Nestle and Swiss, BPO-free and others.”

Aynessazian said that the goal is to make the integration of the Lubrizol businesses happen as smoothly as possible for customers.

“Many of these customers are already customers of Kustom Group,” Aynessazian noted. “For these customers, we believe that this transaction is a benefit in allowing them to consolidate their purchases. For those customers who are new to Kustom Group as a supplier, it is our goal to show them the same level of product quality and service that they have counted on and received through their relationship with Lubrizol.”

2. Ink Manufacturers Develop Online Apps for Troubleshooting (By David Savastano, Editor)
Every day, more people get the information they need from the Internet. If there is a problem that needs to be solved quickly, a solution may be found online.

For printers, wasted time is costly, and keeping their presses running is a necessity. When problems arise such as dot gain or pinholing, for example, printers may look to their ink suppliers. In order to ease the search for information, some leading ink manufacturers have developed online apps to help solve problems that may spring up during a press run.

Flint Group, INX International Ink and Sun Chemical have developed mobile troubleshooting apps. Flint Group Flexographic Products launched its FlexoToolbox App for iPhone, iPad and Android devices during the FTA’s INFO*FLEX show in April 2014.

According to Flint Group, the FlexoToolbox App covers many functions for simplifying flexo prepress, plate making and process control. For example, the FlexoToolbox App can help platemakers calculate plate distortion, control processing parameters like solvent balance, or monitor UVA intensity and determine sleeve diameters.

At GraphExpo 2014, INX International Ink Co. introduced its Troubleshooting Guide App, which is designed as an instant resource to help solve common printing problems.

“Every shop experiences problems at some point and it’s important to limit the amount of downtime,” said Rick Clendenning, president and CEO of INX International Ink Co. “We believe the new Troubleshooting App will complement our service group and provide the extra edge our customers want to run their businesses more efficiently.”

According to INX, the INX Troubleshooting Guide App recognizes symptoms, determines probable causes and finds solutions for many applications, including sheetfed and web offset/heatset; UV flexo, litho, hybrid and metal decorating; EB litho; and 2-and 3-piece metal decorating.

In January 2015, Sun Chemical made its online troubleshooting guide available as an app for mobile devices. Sun Chemical’s troubleshooting app can help customers resolve common technical defects during a press run. It is for flexo, sheetfed, paper packaging, gravure and UV/EB printing issues. Sun Chemical noted that the app uses photos and defect terms, such as dot gain or pinholes, which help the printer identify their technical problem.
 
“Our customers need to keep their pressrooms running smoothly and limit downtime,” said Penny Holland, VP of marketing, North American Inks, Sun Chemical. “This online and mobile solution can help them resolve problems.”

The problems printers face are often immediate, and these apps can help printers get their presses back online.

1. Two Billion-Dollar Mergers in Packaging Will Create Huge Global Entities (By David Savastano, Editor)
There are plenty of mega-mergers in the world of business, and the printing industry has seen its share of these combinations. However, there aren’t that many billion-dollar companies in the printing field, and to see two billion-dollar mergers on the packaging side within a one-month period is unusual, to say the least.
  
These two deals Rock-Tenn Company and MeadWestvaco Corporation (MWV) combining their companies and Ball acquiring Rexam, are creating global packaging companies that, once their respective deals are completed, will be the second- and third-largest packaging companies in the world.

There are also differences between the deals. Ball is buying Rexam outright, and these two companies are highly focused on the can market. MWV and RockTenn will be evenly split between consumer and corrugated packaging.

These mergers can have large ramifications on the ink suppliers, although it remains to be seen if this will be the case.

Rock-Tenn and MeadWestvaco announced on Jan. 26, 2015 that they entered into a definitive combination agreement, which will form a company with combined net sales of $15.7 billion and adjusted EBITDA of $2.9 billion.
  
This new company, which the two industrial giants are calling NewCo, will be the second-largest player in the fields of consumer and corrugated packaging, behind International Paper, whose sales are $23.5 billion.
  
RockTenn is the fifth-largest packaging company, with 2014 sales of $9.9 billion. MWV was 14th, with $5.6 billion in sales. MWV was more focused on consumer packaging (78% of its sales), while RockTenn was centered more on corrugated (72% of sales). Thwe new company will be roughly a 50-50 split between the two markets.
  
MWV shareholders will own 50.1% of NewCo, while RockTenn shareholders will hold 49.9%. The reason for this is apparently tax-related, as MWV had announced previously that it was selling off its specialty chemical business, including its ink resins segment.

Steven C. Voorhees, CEO of RockTenn, will serve as CEO and president of NewCo, and John A. Luke, Jr., chairman and CEO of MWV, will become non-executive chairman of the board of directors. The composition of the board will be eight directors from RockTenn and six directors from MWV.

The company will have its principal executive offices in Richmond, VA, MVC’s HQ, and operating offices in Norcross, GA, where RockTenn was located. NewCo will have approximately 300 locations overall.
  
This is what Voorhees had to say about the merger: “This transaction brings together two highly complementary organizations to create a new, more powerful company with leadership positions in the global consumer and corrugated packaging markets.”

Luke added this comment: “We are creating the leading global provider of consumer and corrugated packaging solutions - and generating significant value for both companies.”

The transaction requires the approval of shareholders of both MWV and RockTenn and is subject to receipt of certain regulatory approvals and other customary closing conditions. Closing is targeted for the second calendar quarter of this year.

Ball Corporation’s acquisition of Rexam PLC, which was announced Feb. 19, is another huge combination within the global packaging industry, although it is centered on the metal beverage packaging market.

At the time of the announcement, Ball, Broomfield, CO, was the eighth-largest player in the packaging field, with sales of more than $8.5 billion. Headquartered in London, Rexam was 11th, with sales of $5.6 billion. The combined company will reportedly have 2014 revenue of approximately $15 billion and approximately 22,500 employees across five continents.

John A. Hayes, chairman, president and CEO of Ball, had this to say about acquiring Rexam: “The combination of Ball and Rexam creates a global metal beverage packaging supplier capable of leveraging its geographic presence, innovative products and talented employees to better serve customers of all sizes across the globe; while at the same time generating significant shareholder value. As our customers’ global reach and product portfolios expand and consumer packaging preferences evolve, the Ball and Rexam combination allows us to remain competitive versus other packaging substrates and responsive to our stakeholders needs for sustainable, innovative and low-cost packaging solutions.”

As is the case of the RockTenn-MWV transaction, the Ball-Rexam deal is subject to approvals from each company’s shareholders and regulatory approvals. The first half of 2016 is the targeted date for closing the deal.

Once these mergers are completed, Stora Enso will fall to fourth in the packaging field, with Amcor fifth. Smurfit Kappa, Crown Cork, Sealed Air, Mondi and Owens Illinois would round out the top 10. D.S. Smith, Packaging Corporation of America, Bemis, Sonoco, Tetra Pak and Graphic Packaging are among the other major players in the field. The packaging field is a fragmented business, much like the ink industry, and with these two consolidations gong through the process of being approved, it is likely that more mergers will be discussed.