Monday, February 4, 2013

January 2013 – Deals, Court Filings & Closures in the Printing, Packaging, Paper & Related Industries

It’s been a case of “Lather Rinse Repeat” in the printing and related industries as the new year gets underway. While many companies are still trying to untangle themselves from the hard times caused by the recession and industries woes, several companies are strategically making acquisitions, integrating the target companies, and shortly thereafter are back into the market as suitors, adding to their conquests.

CCL Industries announced a game-changing acquisition, in a $500 million double header deal acquiring two business units from Avery Dennison, including the well-established Avery brand identity. As reported previously in The Target Report, CCL Industries closed deals in November 2012 and in July 2012. Tightly focused on packaging, and in particular labeling technologies, CCL Industries is expecting to exceed $2 billion in revenues during 2013.

Another powerhouse in the packaging industry, WS Packaging Group, backed by Boston based PE firm J.W. Childs, acquired Label World in Rochester, NY. This marks the company’s third acquisition we have reported in the past six months, including its purchase of another label company in June 2012. This private equity firm clearly likes what it sees as it combs through the packaging industry for attractive candidates.

The Colortree Group, with financial support from Boathouse Capital in Wayne, Pennsylvania, has added Direct Impressions to its previous acquisition of Graphic Innovations, both located in Richmond, Virginia. The company is focusing its efforts on direct mail and related services. In the broader based commercial printing sector, Colorfx continues building a significant regional rollup in Iowa, acquiring Capital City Graphics. With its two other recent acquisitions, the company is reportedly poised to hit $90 million in revenue this coming year.

In the paper products industry, Soundview Paper Company was back in the acquisition mode, acquiring Putney Paper in Putney, Vermont, bolting the northern company onto PE firm Atlas Holdings’ portfolio company, the former Marcal Paper Mills, a recycled paper products mill located in urban northern New Jersey.

The newspaper business continued its steady decline, as the publisher of ten regional titles in Georgia and Alabama, the News Publishing Company, filed for Chapter 11 bankruptcy protection in January. The company announced that it plans to reorganize and emerge from bankruptcy.

Jacob North Printing Company, a commercial and publication printer located in Lincoln, Nebraska, also filed for Chapter 11 bankruptcy, having survived to date for over 120 years, six generations of owners, a stint owned by the local newspaper, as well as complete destruction by fire in 1899. It remains to be seen if this company, with its self-proclaimed “never-say-die-attitude,” can survive the onslaught of digital communication technologies.

We have added a third element to our deal log for non-bankruptcy plant closures. These closures include out-of-court wind-downs and restructurings under state laws, as well as plant shut downs by larger multi-plant firms. In addition to our M&A deal log and record of bankruptcy filings, the listings of these closures are another indication of the ongoing change as the industry right-sizes its production capacity and capabilities to meet the changing demands of the market. Two industry giants, Quad Graphics and 
RR Donnelley, both announced plant closings in January.


2013 January - 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
CCL Industries $1,268 (CN) Toronto, ON Avery Dennison Label $910 Pasadena, CA 1/30/13 $500.0 Acquisition 1) Office & Consumer Products
2) Designed & Engineered Solutions
Link
Royal Printing
(Royal Printing)
No Data Quincy, IL Modern Printing No Data Quincy, IL 1/30/13 No Data Merger Commercial printing Link
Colortree Group No Data Henrico, VA Direct Impressions No Data Richmond, VA 1/30/13 No Data Acquisition
(Dominion Partners)
Continuous forms, direct mail Link
Insty-Prints No Data Chippewa Falls, WI Creative Graphics  No Data Chippewa Falls, WI 1/20/13 No Data Acquisition Printing & copying Link
Caymus Capital Group No Data Los Angeles, CA Fulfillment Corp of America No Data Beaverton, OR 1/17/13 No Data Acquisition Fulfillment & digital printing Link
Nancy Salvini No Data Belleville, NJ Wheal-Grace No Data Belleville, NJ 1/11/13 No Data Family Transfer Commercial printing Link
Professional Print & Mail No Data Fresno, CA Premier Color Graphics No Data Visalia, CA 1/10/13 No Data Acquisition Commercial printing Link
Menasha Packaging No Data Neenah, WI Rand Diversified No Data Edison, NJ 1/4/13 No Data Acquisition Contract packaging & display Link
WS Packaging Group No Data Green Bay, WI Label World No Data Rochester, NY 1/4/13 No Data Acquisition Labels & flexible packaging Link
Toof Commercial Printing No Data Memphis, TN American Digital No Data Memphis, TN 1/2/13 No Data Acquisition Commercial printing Link
Soundview Paper Company No Data Elmwood Park, NJ Putney Paper No Data Putney, VT 1/2/13 No Data Acquisition Paper products Link
Colorfx No Data Des Moines, IA Capital City Graphics No Data Des Moines, IA 1/2/13 No Data Acquisition Commercial print & services
($90Mil combined revenues)
Link


2013 January - 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:
MIR Printing & Graphics 1/18/13 No Data 13-10404 Canoga Park, CA 9th Central CA
Woodland Hills
Victoria S. Kaufman Ovsanna Takvoryan  Printing & copying
Jacob North Printing Co., Inc.  1/14/13 No Data 13-40066 Lincoln, NE 8th Nebraska
Lincoln, NE
Thomas L. Saladino Trev Peterson  Commercial & publication printing
News Publishing Company  1/1/13 No Data 13-40002 Rome, GA 11th Northern GA
Atlanta
Mary Grace Diehl J. Nevin Smith  Newspaper Publishing
Ten titles in GA and AL
Chapter 7 Filings:
Printing & Business Solutions, Inc.  1/31/13 No Data 13-21109 Milwaukee, WI 7th Eastern, WI
Milwaukee
G. Michael Halfenger  Lester A Ottenheimer Printing equipment & supplies
Aull Printing and Copy Plus, Inc.  1/31/13 No Data 13-50113 Salisbury, NC 4th Middle NC
Winston-Salem
Thomas W. Waldrep Jr. William V. Bost  Printing & copying
AMD Printing 1/24/13 No Data 13-02698 Buffalo Grove, IL 7th Northern IL
Chicago
Timothy A. Barnes David M Siegel  Printing & copying
Specialized Printing & Promotions, Inc. 1/17/13 No Data 13-10316 Fresno, CA 9th Eastern, CA
Fresno
Fredrick E. Clement  Adrian S. Williams  Screen printing


2013 January - 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
Impressions Plus Printing and Copying 2/20/13 No Data Winchester, VA None N/A 1/31/13 Printing & copying Link
RR Donnelley  - Printing Facility Apr-13 No Data Greenville, WI RR Donnelley Chicago, IL 1/21/13 Formerly a Banta Book location Link
Quad Graphics - Printing Facility 3/8/13 No Data Dubuque, IA Quad Graphics, Inc. Sussex, WI  1/9/13 Plant opened 1949, owned by Quad since 2010 Link

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