Monday, April 7, 2014

March 2014 – Deals, Court Filings & Closures in the Printing, Packaging, Paper & Related Industries

Significant transactions were announced throughout the spectrum of packaging technologies in March, from the basics - paper making for packaging products, to the sophisticated - global management of brand identity at multiple print providers across the globe, many using different printing technologies. The traditional divide between commercial and packaging printers continues to blur as commercial printers seek opportunities in packaging where they can apply their talents, utilize their capital equipment investments, and transition to the packaging industry where they view a brighter long term future in the business of putting ink on substrate. 

One way to move into packaging is to buy your way in. Transcontinental did exactly that by acquiring flexible packaging printer Capri Packaging. Transcontinental has been seeking to diversify, due to the decline in demand for its primary products: magazines, newspapers, and books. As Transcontinental noted in its press release, it believes that the printing processes used in flexible packaging are similar to their existing competencies. Although the full details of the transaction were not made public, based on its stated goal to jump into flexible packaging, the acquisition looks like a smart deal for Transcontinental. As a kicker to the deal, the former owner of Capri Packaging, Schreiber Foods, which provides 75% of Capri’s total revenues, has committed to use the newly spun off Capri for the next ten years. Nice way to learn the business, albeit at what appears to be a steep price at 1.85 times revenues.

Strine Printing, in York, Pennsylvania, chose instead to evolve from its beginnings as a purely commercial printer, adding packaging and retail display expertise over the years. That transition was complete enough to attract the attention of Menasha Packaging. Headquartered in Neenah, Wisconsin, and with a sharp focus on retail packaging and display, Menasha announced that it has acquired Strine Printing. Measured by the number of employees, Menasha Packaging is approximately seven times the size of Strine, and has 11 manufacturing locations.

Schawk, the brand and image management company that rebranded itself as the less-than-memorable “SGK” has announced that it will be acquired by Matthews International and combined with Matthews’ brand management services. The combined company will provide brand management, pre-press services and imaging services for the primary packaging and corrugated industries. SGK also brings strengths in creative and conceptual services to the acquirer. In a rather quirky combination of businesses, Matthews' other line of business is caskets, cremation equipment and cemetery products such as crypt plates.

There were several deals in the corrugated packaging segment. With backing from PE firm Monroe Capital, 127 Summit Holdings was formed and acquired Summit Container in Monument, Colorado as its platform company. In another deal with PE backing, Arbor Investments added to its portfolio of food and beverage related packaging companies with the acquisition of Pacific Northwest packaging printer Trojan Lithograph. Welch Packaging in Elkhart, Indiana acquired the assets of nearby Indiana Corrugated, bringing this privately held company to eight plants in the Midwest.

RockTenn, a $9.6 billion integrated manufacturer of corrugated packaging, acquired the Simpson Tacoma Kraft Company, producer of white linerboard which is used as the clean, printable outer surface of corrugated boxes. With this sale, it appears that Simpson has come full circle through three decades of acquiring, and now completely divesting, a collection of paper mills across the US. Once the largest producer of Text and Cover grades in the US, Simpson produced Starwhite Vicksburg, one of my favorite papers that I often specified for high end corporate communications. (Just remembering the name of that beautifully smooth and fine paper, “Starwhite Vicksburg,” evokes memories of early mornings and late nights working with pressman and graphic designers to achieve just the right color with that double-hit of super warm red… )

The other hot sector last month was community newspapers. Adams Publishing Group, HQ’ed in Minneapolis, opened the spring season with a triple header, acquiring three publishing groups from American Consolidated Media. All together, the three divisions include 34 print publications, digital media assets and printing facilities, spread out from the Midwest though Ohio and down to the Chesapeake area in Virginia.

In an apparent flurry of spring cleaning, closures and bankruptcies return in greater numbers to our deal log. Standard Register announced the closing of its Dayton Ohio facility which specialized in forms printing. Continuing the national trend of newspapers to consolidate printing in regionally centralized efficient facilities, The Independent in Marshall, Minnesota, announced it will no longer be so independent, transferring its print operations to the House of Print in Madelia, Minnesota.

The Dolan Company filed for Chapter 11 bankruptcy, along with 14 related companies. The 15 entities filed a motion for joint administration, combining the interests of business journals in 19 markets, as well as its litigation support companies such as Counsel Press. The company reportedly plans a prepackaged plan of reorganization in which Bayside Capital, the investment firm that now owns Dolan Company’s substantial debt, will emerge as the new majority owner.



2014 March - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries  

Deal Party #1
(Surviving Entity)
Pre-Deal
Revenues
($Mil )


Party #1 Address


Deal Party #2
Pre-Deal
Revenues
($Mil )


Party #2 Address
Date
Deal
Public
Deal
Value
($Mil)

Deal Structure
(Intermediary)


Notes

Press
Releases
Menasha Packaging No Data Neenah, WI Strine Printing No Data York, PA 3/31/14 No Data Acquisition Commercial, folding cartons Link
127 Summit Holdings No Data Monument, CO Summit Container No Data Monument, CO 3/27/14 No Data Acquisition Corrugated packaging Link
Emprint/Moran No Data Baton-Rouge, LA TriStar Graphics No Data Monroe, LA 3/17/14 No Data Asset acquisition Commercial printing Link
Matthews International $898.7 Pittsburgh, PA Schawk (SGK) $443.0 Des Plaines, IL 3/17/14 $577.0 Acquisition Brand & image management Link
Adams Publishing Group No Data Minneapolis, MN Ohio Publishing
(Div ACM)
No Data Columbus, OH 3/14/14 No Data Acquisition
(Dirks, Van Essen)
Community Newspapers Link
Adams Publishing Group No Data Minneapolis, MN Chesapeake Publishing
(Div ACM)
No Data Easton, MD 3/14/14 No Data Acquisition
(Dirks, Van Essen)
Community Newspapers Link
Adams Publishing Group No Data Minneapolis, MN Superior Publishing
(Div ACM)
No Data Duluth, MN 3/14/14 No Data Acquisition
(Dirks, Van Essen)
Community Newspapers Link
Transcontinental $2,080 Montreal, QC Capri Packaging
(Div. Schreiber Foods)
$72.0 Clinton, MO 3/11/14 $133.0 Asset acquisition Flexible packaging Link
Sigma Plastics Group $2,450 Lyndhurst, NJ Excelsior Packaging Group No Data Yonkers, NY
Rosman, NC
3/4/14 No Data Asset acquisition Flexible packaging Link
Arbor Investments No Data Chicago, IL Trojan Lithograph No Data Renton, WA 3/4/14 No Data Acquisition Packaging & POP Link
Welch Packaging No Data Elkhart, IN Indiana Corrugated No Data Marion, IN 3/4/14 No Data Asset acquisition Corrugated packaging Link
RockTenn $9,620 Norcross, GA Simpson Tacoma Kraft Co. No Data Tacoma, WA 3/3/14 $343.0 Acquisition Pulp & paper mill Link
Ampac No Data Cincinnati, OH Business Deposits Plus No Data Brecksville, OH 3/2/14 No Data Acquisition Banking supplies Link


2014 March - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries



Filing Party

Date
Case
Filed
Pre-Petition
Revenues
($Mil )



Case #



Filing Party Address



Circuit



Region & City



Judge



Attorney for Debtor



Notes
Chapter 11 Filings:
The Dolan Company
(Jointly Administered w/ 14 subs.)
3/23/14 $154.0 14-10614 Minneapolis, MN 3rd Delaware
Wilmington
Brendan
Linehan Shannon
Timothy P. Cairns  Newspapers in 19 markets
Counsel Press
(Jointly Admin w/ Dolan)
3/23/14 No Data 14-10618 Minneapolis, MN 3rd Delaware
Wilmington
Brendan
Linehan Shannon
Laura Davis Jones  Litigation support services
Ramallo Bros. Printing, Inc. 3/14/14 No Data 14-01948 San Juan, PR 1st Puerto Rico
San Juan
Edward A. Godoy Alexis
Fuentes Hernandez
Commercial printing
Imagetek 3/10/14 No Data 14-00477 Grimes, IA 8th Southern IA
Des Moines
Anita L. Shodeen Michael P. Mallaney  Document management
EZ Mailing Service 3/7/14 No Data 14-01639 Indianapolis, IN 7th Southern IN
Indianapolis
James M. Carr David R. Krebs  Mailing & digital printing
Chapter 7 Filings:
No Chapter 7 Filings Found this Month --- --- --- --- --- --- --- --- ---


2014 March - Non-Bankruptcy Closures in the Printing, Packaging, Paper & Related Industries



Closed Company / Facility

Date of Closure
Pre-Closure
Revenues
($Mil )



Closing Address
Related Party Related Party
Address
Date Closure Public


Notes

Press
Releases
Standard Register - Printing Facility Jul-14 No Data Salisbury, MD Standard Register Dayton, OH 3/27/14 Forms printing Link
Advance Printing Apr-14 No Data Longmont, CO None N/A 3/31/14 Commercial printing Link
The Independent
(formerly The Marshall Messenger)
4/7/14 No Data Marshall, MN House of Print Madelia, MN 3/27/14 Transferring print operations to Madelia, MN Link
Datamark Systems Mar-14 No Data Laval, QC None N/A 3/19/14 Document  Link
Cather Publishing Mar-14 No Data Birmingham, AL None N/A 3/13/14 Letterpress/Commercial printing Link
Graham Packaging May-14 No Data Chicago, IL Graham Packaging Company York, PA 3/7/14 Blow molded containers Link
Adman Printing 3/16/14 No Data Corning, CA None N/A 3/16/14 Commercial printing, fire damage Link
RPM Solutions Group Feb-14 No Data Rosedale, MD None N/A 3/5/14 Commercial printing, $9Mil at peak Link

Tuesday, March 4, 2014

February 2014 – Deals, Court Filings & Closures in the Printing, Packaging, Paper & Related Industries

Innovative printers, large and small, continue to invest in software companies that manage, create, repurpose, format and deliver informational content. These innovative companies are not choosing between print or e-delivery channels. They are enabling delivery of their customers’ content to any one of a multitude of output devices; the ultimate consumer views that content on a device of their own choosing, including ink-on-paper.

RR Donnelley acquired MultiCorpora, a Canadian-based company that provides language translation software. A review of RR Donnelley’s corporate “About” statement and company website indicates how far the largest US printer has evolved from providing primarily printing services. This latest acquisition adds to the company’s ability to assist customers to process and deliver content where, how, and when it will be most effective, including via a wide variety of printed products.

At the other end of the scale in terms of size, Thomson-Shore, an employee-owned company in Michigan that specializes in printing books, appears to be shifting gears to take advantage of the growing importance of self-publishing in the book printing industry. The company acquired PublishNext and its subsidiary, Seattle Book Company. PublishNext is an online service that assists authors to self-publish their own work by providing design, editing and other services. The result is books that look professional and can compete in the market against books published by the big name publishing houses. The Seattle Book Company adds marketing and distribution services to the mix for those self-publishers. The final composed book can be printed using traditional offset, or stored digitally, marketed online, delivered as an e-book or output on a digital press, bound and delivered on demand.

Vistaprint, the online printing service, acquired People & Print Group in the Netherlands. People & Print Group uses online branded websites to acquire print volume that is based on more traditional file uploads, rather than from templates which is the basis for Vistaprint’s tremendous growth. Vistaprint has grown to sales in excess of $1.2 billion by catering to very small businesses with orders averaging less than $41 each. Vistaprint used online templates and factory automation to disrupt and dominate the business of printing business cards. Will the company also use software to succeed in the “high-touch” business of printing custom orders from customer-supplied files?

CodeMantra, a pure software play in the digital publishing space, was acquired by an unnamed Boston-based investment group, providing management expertise and additional capital. The company’s software enables publishers to create, format, manage, update and distribute informational content to devices in a platform-agnostic environment. One of those platforms is print.

The packaging sector was once again active. Graphic Packaging Holding Co, a global company with headquarters in Atlanta, Georgia, purchased the Benson Group, a manufacturer of folding cartons in the UK. The transaction multiple was reported at 6.6 times EBITDA, equating to a healthy purchase price of 83% of trailing revenue. In another transaction earlier in the month, Graphic Packaging divested its heat transfer label division, Di-Na-Cal Decorative Labels & Systems. The buyer was Multi-Color Corporation, one of the most active acquirers in packaging. Hood Packaging in Madison, Wisconsin, acquired the Bemis Paper Packaging Division, a manufacturer of multi-wall flexible packaging.

Newspapers continue their struggle to stay relevant in the midst of circulation declines and commensurate cuts in editorial staff. The Baltimore Sun Media Group is acquiring the alternative free weekly City Paper, and plans to consolidate operations as it prepares for the planned spinoff of its own parent, the Tribune Co., which in turn is shedding its entire print media portfolio to focus on its TV stations, cable networks and online businesses. Gannett Publishing Services, the printing arm of the Gannett publishing company, announced that it is closing The Advocate printing plant in Newark, Ohio, and moving the production to its plant in Columbus, Ohio. These moves are consistent with our previously noted newspaper industry trend to consolidate printing operations for several papers in one facility.



2014 February - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries  

Deal Party #1
(Surviving Entity)
Pre-Deal
Revenues
($Mil )


Party #1 Address


Deal Party #2
Pre-Deal
Revenues
($Mil )


Party #2 Address
Date
Deal
Public
Deal
Value
($Mil)

Deal Structure
(Intermediary)


Notes

Press
Releases
RR Donnelley $10,480 Chicago, IL MultiCorpora No Data Gatineau QC 2/27/14 No Data Acquisition Translation software Link
Packers Acquisition Sub
(Sub Griffin Holdings)
No Data Los Angeles, CA Tufco Technologies No Data Green Bay, WI  2/24/14 No Data Acquisition Flexographic printing Link
Baltimore Sun Media Group
(Div. Tribune Co.)
No Data Baltimore, MD City Paper
(Div Times-Shamrock Comm.)
No Data Baltimore, MD 2/20/14 No Data Acquisition Tabloid newspaper Link
codeMantra Investment Group No Data Boston, MA codeMantra No Data Philadelphia, PA 2/20/14 No Data Acquisition Content management Link
Sabin Paper Acquisition
(Sabin Robbins Converting)
No Data West Chester, OH Sabin Robbins No Data West Chester, OH 2/19/14 No Data Asset Acquisition Paper distribution & converting Link
Upper Valley Press ESOP No Data North Haverhill, NH Upper Valley Press No Data North Haverhill, NH 2/19/14 No Data ESOP Newspapers & inserts Link
Bayside Printing No Data Houston, TX G3 Direct Mail Advertising No Data Spring, TX 2/19/14 No Data Acquisition Mailing Services Link
Graphic Packaging Holding
(European Sub)
$4,480 Atlanta, GA Benson Group $200 Leicester, UK 2/19/14 $165.0 Acquisition Folding cartons Link
Thomson-Shore No Data Dexter, MI PublishNext No Data Seattle, WA 2/18/14 No Data Acquisition Self-published book printing Link
Vistaprint $1,210 Venlo,
Netherlands
People & Print No Data Deventer,
Netherlands
2/18/14 No Data Acquisition
(Shan Finance)
Online commercial printing Link
Hood Packaging No Data Madison, MS Bemis Paper Packaging Div $160.0 Neehan, WI 2/13/14 No Data Acquisition Multi-wall flexible packaging Link
Harman Press No Data N. Hollywood, CA Fox Printing No Data Sun Valley, CA 2/14/14 No Data Acquisition Commercial printing Link
Digibell
(sub Sun Litho)
No Data Salt Lake City, UT Rastar
(Div TC Transcontinental)
$2,110 Montreal, QC 2/11/14 No Data Acquisition
(New Direction)
Digital printing Link
Quad/Graphics $4,580 Sussex, WI UniGraphic No Data Woburn, MA 2/5/14 No Data Acquisition Commercial printing Link
Hohner Maschinenbau No Data Tuttlingen,
Germany
Ernst Nagel No Data Stuttgart, Germany 2/5/14 No Data Acquisition Bookletmaking equipment Link
Dover $8,730 Downers Grove, IL MS Printing Solutions $70.0 Caronno, Italy 2/4/14 No Data Acquisition Inkjet printing equipment Link
Multi-Color Corporation $680.9 Cincinnati, OH Di-Na-Cal Label Group
(Div of Graphic Packaging Int'l)
$64.0 Cincinnati, OH 2/4/14 No Data Acquisition Labels & heat transfer Link


2014 February - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries



Filing Party

Date
Case
Filed
Pre-Petition
Revenues
($Mil )



Case #



Filing Party Address



Circuit



Region & City



Judge



Attorney for Debtor



Notes
Chapter 11 Filings:
Centennial Bindery, LLC 2/27/14 No Data 14-90348 Clarksville, IN 7th Southern IN
Indianapolis
Basil H. Lorch III Neil C. Bordy Commercial & specialty binding
Chapter 7 Filings:
Prime Printing 2/21/14 No Data 14-01257 Carolina, PR 1st Puerto Rico
San Juan
Brian K. Tester Javier A. Vega-Villalba Commercial printing
Salisbury Printing Company, Inc. 2/6/14 No Data 14-50123 Salisbury, NC 4th Middle NC
Winston-Salem
Lena M. James Rober F. McLaughlin Commercial printing


2014 February - Non-Bankruptcy Closures in the Printing, Packaging, Paper & Related Industries



Closed Company / Facility

Date of Closure
Pre-Closure
Revenues
($Mil )



Closing Address
Related Party Related Party
Address
Date Closure Public


Notes

Press
Releases
The Advocate - Printing Facility May-14 No Data Newark, ,OH Gannett Publishing Services
(Sub Gannett Co.)
McLean, VA  2/28/14 Transferring print operations to Columbus, OH Link