The Prize Patrol Goes Digital – April 2025 M&A Activity

May 6, 2025, 7:23 pm

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Direct mail has proven to be a resilient channel for the delivery of both marketing and transactional content. The maturation of digital inkjet printing technologies has measurably increased the effectiveness of personalized mail communications. However, the direct mail industry faces challenges posed by postal rate increases, paper supply constraints, and the iterative impacts of reduced mail volume, all piled on top of the relentless trend of content transitioning to electronic media. As we have noted over the past several years in The Target Report, we believe that the downward trend in certain print segments is inexorable: content that can move online will move online.

PCH Exits Direct Mail

The world of wishful thinking is not immune to these trends. On April 9th, Publishers Clearing House filed for Chapter 11 bankruptcy protection. The company, which has fallen from the pinnacle of the direct mail industry, announced that in addition to a balance sheet restructuring, it would exit its legacy direct mail as well as its online retail shopping and subscription solicitation businesses. Despite all this, the company nonetheless promised to continue its sweepstake contests and surprise winners with its oversize checks.

In conjunction with its bankruptcy filing, the company obtained debtor-in-possession financing to fund its now much reduced day-to-day operations, as well as enable it to pay out those prizes. At least for now, the famous PCH Prize Patrol will still knock on doors and deliver an oversize check, and as always, the check will be accompanied by a bottle of champagne and a bouquet of colorful balloons.

In its press release covering the bankruptcy filing, there was no ambiguity about the company’s decision to exit the print and mail mediums; it is “utilizing the financial restructuring process to finalize the shift away from its legacy direct mail and magazine subscription” businesses. The CEO of the company noted that the bankruptcy filing “marks a crucial development in our transition to a digital advertising-supported entertainment company. By taking this step, we are breaking free from the past financial constraints of our legacy direct mail, online retail merchandise, and magazine subscription operating model.” No ambiguity there; print is out.

If PCH, as the company is more commonly called, is no longer in the magazine subscription business, then what is left? An online exploration into the PCH world reveals that the company owns several website channels that entice online visitors to play games, use its proprietary search engine, answer quiz questions, and of course, enter sweepstakes (the allure of winning the big one is still the draw in all PCH offerings). The sites bombard the visitor with personalized advertising, the source of the company’s revenue.

The company leverages its sweepstakes model to collect first-party user data. It claims to have over 170 million opt-in users (clearly, if this number is accurate, it is evidence that hope springs eternal). That treasure trove of data is the company’s best hope for survival as it enables PCH to target advertisers’ campaigns for their brands via the PCH media channels. The future PCH business model appears to mirror the data-driven advertising business that RRD acquired last year when it purchased the Vericast Digital Marketing & Technology business. (See The Target Report: Half a Loaf is Better than None – March 2024.) The difference for PCH is that sweepstakes are always the draw to collect user information.

At one point in its history, PCH was reportedly the highest volume mailer in the United States, second only to the IRS during tax season. During the heyday of its mail-order and online retail merchandise business, prior to Amazon’s and Walmart’s domination of online retail, PCH was generating revenue of approximately one billion dollars per year. Now in bankruptcy, the company has reported that the direct mail print and online merchandize operations are closed. Revenues going forward are projected to be only $38 million in 2025. The employee count is down to just 105 after the bankruptcy filing, with over three hundred employees laid off in 2024. Magazine subscription revenue is now zero. There will be no more oversize manilla colored envelopes dropping into the postal stream proclaiming “Final Step Required,” “Winning Number Found,” and “Guaranteed Winner” in loud red type.

PCH was started in 1953 when Long Island, New York, husband and wife team Harold and LuEsther Mertz mailed out 10,000 envelopes soliciting magazine subscriptions. At the time, magazine subscriptions had mostly been sold by door-to-door salesmen. When one hundred orders were received from that first mailing, Harold and LuEsther, along with their daughter Joyce, were convinced they were onto something. Over the next decade, they successfully grew the company and began their lifelong dedication to charitable causes.

In 1967, PCH ran its first sweepstakes contest, copying a technique pioneered by Reader’s Digest which began the subscription sweepstakes craze with its program in 1962. That initial contest featured the then-stunning grand prize worth $100,000. In 1989, two members of the PCH advertising team dreamed up the Prize Patrol, a happy clean-cut team that shows up unannounced on front doorsteps to surprise sweepstake winners at home. The result was often great TV advertising spots for PCH, candid-camera events that kept millions of aspiring winners’ hopes alive that they too could win.

Critically, it was never a requirement in the PCH sweepstakes that entrants actually buy anything, as that would have made the sweepstakes illegal. However, many recipients either missed that disclaimer, or they believed that their chances of winning were enhanced if they went ahead, subscribed to a publication, or in later years, purchased something that was advertised alongside the sweepstakes promotion. For PCH, and others, the formula worked, and the ongoing sweepstakes kept the magazine subscriptions flowing. According to the New York Times, by 1998 PCH and its copy-cat competitor, AFP, were mailing out in excess of four hundred million pieces of mail annually. The oversized, sticker-laden, exclamation-point-and-arrow-decorated sweepstake solicitations were responsible for nearly one-third of all new magazine subscriptions. More subscriptions drove increased circulation, which in turn supported higher advertising rates. Everybody was happy with the direct mail-sweepstakes-subscription-circulation-advertising business ecosystem.

That is not entirely true, not everybody was happy. The advertising practices of PCH (and its competitors) have been challenged in lawsuits. The company has at one time or another been sued by all fifty state Attorneys General and the Federal Trade Commission (FTC) and investigated by Congress. Over the years, there have been settlements with payouts in the tens of millions of dollars. Most recently, in a settlement that emerged during the bankruptcy proceeding, the FTC is sending a payout of $18.5 million to 281,724 consumers. The claim was that PCH was guilty of deceptive advertising that was purposely aimed at older and lower income audiences. The ongoing settlements, coupled with the dramatic decline in its magazine subscription business and competition from more sophisticated and well-heeled online sellers, led to the April bankruptcy filing and final withdrawal from the direct mail market.

Direct Mail Lives On

Quad, which now bills itself as a “marketing experience company” as opposed to a printing company, has acquired Enru, a third-party co-mailing and logistics service provider. Buried somewhere inside Enru are the remnants of former acquisitions completed under the LSC Communications banner: the Clark Group, Fairrington Logistics, and the former RR Donnelley Logistics & Co-mail Services division.

Enru’s slogan is “tech-enabled logistics” highlighting its use of technology solutions to optimize mailing and freight operations. But make no mistake about it, Enru is all about moving stuff, not digital content, efficiently from one place to another. In other words, Quad is acquiring Enru to get its customers’ printed products to the right place at the right time while maximizing postal and freight discounts. Those printed products include books, catalogs, magazines, and direct mail.

In another notable transaction in April, Arna Marketing Group acquired selected assets of Federal Direct*, a direct mail printing and mailing services company headquartered in Little Falls, New Jersey, and with a former offset and digital print production facility in Torrington, Connecticut. Arna has assumed the manufacturing and servicing of Federal Direct’s business in its Branchburg, New Jersey facility. With an installed fleet of digital web and sheetfed digital inkjet printers, and supporting workflow technology, the Arna facility is well-positioned to produce print in a secure environment well into the future of direct mail.

* Graphic Arts Advisors, publisher of The Target Report, served as exclusive advisor to Federal Direct in this transaction.

   

2025 April - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries

Deal Party #1 (Surviving Entity)

Pre-Deal Revenue (US$Mil)

Party #1 Address

Deal Party #2

Pre-Deal Revenue (US$Mil)

Party #2 Address

Date Deal Public

Deal Value (US$Mil)

Deal Structure (Intermediary)

Notes

Link

Image Options

$43.0

Foothill Ranch, CA

SPMD

$17.0

Los Angeles, CA

4/29/25

No Data

Acquisition

Environmental graphics

Link

Meyers

No Data

Minneapolis, MN

Mankato Packaging

No Data

North Mankato, MN

4/29/25

No Data

Acquisition

Folding cartons

Link

Boone Newsmedia

No Data

Tuscaloosa, AL

The Argus Press

No Data

Owosso, MI

4/25/25

No Data

Acquisition (Dirks, Van Essen)

Community newspaper

Link

Atlas Holdings

No Data

Greenwich, CT

De La Rue

$388.5

Basingstoke, UK

4/15/25

$347.1

Acquisition

Currency printing

Link

Minuteman Press, Winnipeg

No Data

Winnipeg, MB

Rap Printers

No Data

Winnipeg, MB

4/14/25

No Data

Acquisition

Printing & copying

Link

PALM

$2,070

Aalen, Germany

Packaging plants (5 facilities) Div. International Paper

$19,000

Memphis, TN

4/14/25

No Data

Acquisition

Corrugated boxes

Link

Tower Products

No Data

Easton, PA

Nova Pressroom Products

No Data

Jacksonville, FL

4/14/25

No Data

Merger

Pressroom chemicals

Link

Ennis

$394.6

Midlothian, TX

Northeastern Envelope

No Data

Old Forge, PA

4/11/25

No Data

Acquisition

Envelope manufacturing

Link

North State Media

No Data

Raleigh, NC

Stanly News & Press (Prop. Carpenter Media Group)

No Data

Albemarle, NC

4/11/25

No Data

Acquisition

Community newspaper

Link

Texas Heritage Imaging & Printing

No Data

Arlington, TX

Metro Signs

No Data

Arlington, TX

4/11/25

No Data

Acquisition (Generational Group)

Wide-format printing

Link

Loftware (Port co. Riverside Partners)

No Data

Portsmouth, NH

BL.INK

No Data

Austin, TX

4/10/25

No Data

Acquisition

Digital link systems

Link

Quad

$2,650

Sussex, WI

Enru (Div. LSC Communications)

No Data

Bolingbrook, IL

4/9/25

No Data

Acquisition

Mail processing & logistics

Link

Arna Marketing Group

No Data

Branchburg, NJ

Federal Direct (Advised by Graphic Arts Advisors)

$16.1

Little Falls, NJ

4/4/25

No Data

Asset Acquisition (Graphic Arts Advisors)

Direct mail printing

Link

Inovar Packaging Group (Port co. Kelso & Company)

No Data

Dallas, TX

ModTek

No Data

Pennsauken, NJ

4/3/25

No Data

Acquisition

Label printing

Link

Ahlstrom

$3,200

Helsinki, Finland

Stevens Point Mill (Div. Pixelle Specialty Solutions)

No Data

Stevens Point, WI

4/3/25

No Data

Acquisition

Specialty paper mill

Link

Durst Group

No Data

Brixen, Italy

Callas Software

No Data

Berlin, Germany

4/2/25

No Data

Acquisition

Digital prepress software

Link

2025 April - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries

Filing Party

Date Case Filed

Pre-Petition Revenue (US$Mil)

Case #

Filing Party Address

Circuit

Region & City

Judge

Attorney for Debtor

Notes

Chapter 11 Filings:

Inked Playmats Corp.

4/14/25

No Data

25-14046

Boca Raton, FL

11th

Southern FL West Palm Beach

Mindy A. Mora

Philip J. Landau

Printed consumer products

Publishers Clearing House

4/9/25

$181.9

25-10694

Hicksville, NY

2nd

Southern NY New York

Martin Glenn

Lauren Catherine Kiss

Direct mail solicitations

Vastav Inc dba Alphagraphics #376

4/2/25

No Data

25-41211

Carrollton, TX

5th

Northern Texas Fort Worth

Mark X. Mullin

Robert T. DeMarco

Printing & copying

Chapter 7 Filings:

No Chapter 7 Filings Found this Month

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		2025 April - Non-Bankruptcy Closures in the Printing, Packaging, Paper & Related Industries
		Closed Company / Facility	Date of Closure	Pre-Closure Revenue (US$Mil)	Closing Address	Related Party	Related Party Address	Date Closure Public	Notes	Press Releases
		Haney	4/24/25	No Data	Cincinnati, OH	None	N/A	Apr-25	Labels & flexible packaging	Link
		Security Bindery Workers	Jun-25	No Data	Eden Prairie, MN	None	N/A	Apr-25	Trade bindery	Link
		Quad - Printing plant	5/16/25	No Data	Greenville, MI	Quad	Sussex, WI	Apr-25	Retail insert printing plant (Formerly Vertis facility)	Link
		Pixelle - Mill	Dec-25	No Data	Chillicothe, OH	Pixelle Specialty Solutions (Port co. H.I.G. Capital)	Spring Grove, PA	4/15/25	Specialty papers mill	Link
		Graphic Packaging - Paperboard plant	6/1/25	No Data	Middletown, OH	Graphic Packaging	Atlanta, GA	4/3/25	Consolidation into Texas & Michigan plants	Link

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Is M&A Activity in Commercial Print Poised for a Comeback? – May 2025 M&A Activity

June 7, 2025, 9:44 am

≫ Next: Challenges and Opportunities: Hardware versus Software – June 2025 M&A Activity

≪ Previous: The Prize Patrol Goes Digital – April 2025 M&A Activity

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The pace of merger and acquisition activity in the commercial printing segment picked up in May 2025, prompting a timely question: Is the commercial print deal market poised for an accelerated pace as we head into the second half of 2025?

When the first Target Report Annual Review was published in 2019, there were 40 transactions in which the target company was primarily characterized as a commercial printing company. That number fell dramatically to just 27 in 2020 and remained relatively stable at 29 and 26 commercial-print transactions in 2021 and 2022, respectively. As the highly disruptive post-COVID period began to fade in late 2022, M&A transactions in the commercial print sector picked up, reaching 33 in 2023 and 34 in 2024. The recent uptick may very well be the harbinger of a new wave of consolidation in the commercial printing business, as stronger companies rationalize markets with overcapacity.

Commercial Print Deal Volume Notches Upward

Among the most noteworthy transactions in the past year, Drummond, based in Jacksonville, Florida, and one of the more prominent practitioners of the regional roll-up strategy, executed a double-header in the Atlanta metro market. The company announced the acquisition of Tucker Castleberry Printing, a long-established commercial printer in Atlanta proper, and New London Communications, located just north in Alpharetta, Georgia. This move reinforces Drummond’s sustained growth strategy across the Southeastern US and adds to its presence in its key secondary metro market. (See The Target Report: Commercial Printing: Consolidation or Regional Expansion? – November 2019.)

While Drummond has not publicly disclosed any tuck-in or integration plans, the proximity and overlapping capabilities of these two companies suggest consolidation could be on the horizon. Either way, the deal signals confidence in the commercial print market, at least for those with scale, specialization, or regional dominance. It is also indicative of sellers deciding that the time has come to bow to the pressure to consolidate.

Drummond’s twin acquisition was not an isolated event. In total, five transactions in the general commercial printing segment were recorded in May, the highest monthly count in recent years. A review of the trailing twelve-month deal activity shows that while growth in the number of deals has been modest, it is on an upward trend, suggesting renewed confidence in the segment. At the very least, there is a resurgence of interest from owners willing to sell, and there are buyers willing and able to step up and acquire commercial printing companies.

Packaging as a Growth Avenue: Folding Carton Focus

Another trend with traction in commercial printing is the strategic move into folding carton production. While packaging is a distinct market with different customer expectations, regulatory requirements, and production workflows, it shares several core competencies with commercial printing. This is especially true when it comes to offset press operations that either have or upgrade to presses capable of handling thicker paperboard substrates.

This trend is not theoretical. Oliver Printing, formerly headquartered in the Cleveland area, offers one of the best case studies in this transformation from commercial printing to folding carton manufacturing. The company successfully reinvented itself over the past decade, transitioning from its five-generation history as a commercial printer to its current position as primarily a folding carton producer. This strategy led to successive private equity acquisitions and its evolution into a multi-location packaging operation. (See The Target Report: The Box is Back – January 2023.)

In the past year, Digital Color Concepts, based in Mountainside, New Jersey, with financial backing by private equity fund Sherburne Partners, acquired Tiger Press in Massachusetts. Tiger Press, formerly purely a commercial printing company, had entered the folding carton business in recent years. Another recent transaction that follows this pattern was RoyerComm’s merger with Prism Color in Pennsauken, New Jersey. In both cases, folding carton capabilities were cited explicitly as a key driver in the acquisition rationale.

These examples illustrate how forward-thinking commercial printers are not merely responding to the decline in traditional print volumes. Some are actively repositioning themselves toward growth segments, developing expertise in folding cartons, and in the process, enhancing their appeal as acquisition candidates. Others are using M&A to acquire those companies, to efficiently and effectively bring folding carton capabilities into their product mix.

Unique Product Specialization

Another notable transaction highlighted in the above chart, due to the target company having a significant secondary product, is Mittera’s acquisition of Rex3, a Florida-based commercial printer also known for its niche specialty: printing trading cards. With collectibles experiencing a post-pandemic revival, driven by gaming culture and online marketplaces, trading cards have emerged as a bright spot in the specialty print sector. Mittera cited Rex3’s capabilities in this high-value category as an important factor in its decision to complete the acquisition. The acquisition underscores a consistent theme in today’s market: differentiation and specialization are key drivers of value in commercial print mergers and acquisitions.

The Franchise-Driven Print & Copy Segment

This upward trend in transaction volume deserves closer inspection. Not all commercial print deals are created equal. When we filter out a separate subset of transactions, those classified as being in the print & copy segment, i.e., those typically involving small storefront operations, a more nuanced picture emerges. The deals involving these smaller companies represent 12 of the 30 transactions we identified as being in the commercial segment.

These print & copy companies are smaller shops, often located in retail corridors or downtown shopping districts, and usually maintain a street-level presence designed to attract local walk-in business. A notable share of these transactions involves franchise conversions, often facilitated with the support or involvement of the master franchisor. In two of the past twelve months, June ’24 and April ’25, the only commercial printing companies that traded were those with franchise operations as buyers.

In some cases, the buyer is a first-time entrant into the printing business, seeking the training, brand recognition, and operating systems of an established franchise network. In other cases, the buyer is an existing franchisee looking to expand within their designated territory. These franchise buyers may fold the acquired location into an existing franchise location, or alternatively, retain the operation in the acquired location, thereby increasing the number of storefronts under their control.

Beneath the Surface: Stability or Stagnation?

At face value, these numbers, while increasing, still suggest relative calm in the general commercial market. However, conversations with owners tell a more cautious tale. We are seeing an increase in exploratory outreach from commercial printing company owners who are neither thriving nor in financial distress. Many are simply treading water, breaking even, and have begun to consider succession plans, or are actively looking for a way to exit the business gracefully.

In many cases, these companies were already under pressure before the pandemic and were kept afloat thanks to government stimulus programs. The Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) injected life-saving liquidity into otherwise marginal operations. However, for many, the money has now been spent, with some of it covering losses and some used for equipment refurbishment. Without substantive structural change, the pre-pandemic financial pressures have re-emerged.

The steady secular decline in general commercial printing, marked by shrinking demand, rising input costs, and the persistent pricing pressure, has resumed its long-term trajectory. The brief surge in demand that followed the pandemic is fading, and competitive pressure has returned to the market. Print buyers are once again exerting downward pricing pressure. The optimism of 2022–2023 is giving way to a more sober view of the road ahead. For many, 2019 was the benchmark year considered to be the normal economic condition that would return as the impact of the pandemic receded into history. Instead, demand has swung wildly in response to the lockdown and its aftermath, supply constraints supported price increases, excessive inventory was laid on and subsequently had to be worked off. And now, in 2025, owners face the oscillating threat of extreme tariffs. Company owners appear to be adjusting to the reality that constant change is the new normal, and there may not be a better time to plan an exit.

Looking Forward: A Steady Stream of M&A to Come?

Although it may be too soon to draw firm conclusions, the current trend in M&A transactions within the commercial printing segment appears to be upward. When viewed alongside an increase in confidential owner inquiries, the data suggests that further consolidation is on deck for the commercial printing segment. While May’s activity may not represent a breakout moment, it may very well be a bellwether.

 

2025 May - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries

Deal Party #1 (Surviving Entity)

Pre-Deal Revenue (US$Mil)

Party #1 Address

Deal Party #2

Pre-Deal Revenue (US$Mil)

Party #2 Address

Date Deal Public

Deal Value (US$Mil)

Deal Structure (Intermediary)

Notes

Link

Crisp Imaging

No Data

Costa Mesa, CA

AAA Blueprint & Digital Reprographics

No Data

Orange, CA

5/27/25

No Data

Acquisition

Reprographics & wide format

Link

Drummond

$65.9

Jacksonville, FL

New London Communications

$7.9

Alpharetta, GA

5/22/25

No Data

Acquisition

Commercial printing

Link

Drummond

$65.9

Jacksonville, FL

Tucker Castleberry Printing

No Data

Atlanta, GA

5/22/25

No Data

Acquisition

Commercial printing

Link

Ad Populum

No Data

Santa Monica, CA

Diamond Comic Distributors

No Data

Hunt Valley, MD

5/20/25

No Data

363 Sale in Ch. 11

Comic book distribution

Link

Fort Orange Press

No Data

Albany, NY

Alchar Printing

No Data

Troy, NY

5/19/25

No Data

Acquisition

Commercial printing

Link

Smart Source

$250.0

Suwanee, GA

CTP Solutions

No Data

Agoura Hills. CA

5/14/25

No Data

Acquisition

Print Management

Link

Minuteman Press, Williamsville

No Data

Williamsville, NY

Minute Print

No Data

Cheektowaga, NY

5/13/25

No Data

Acquisition

Printing & copying

Link

Provident Group (Sub. of Anderson & Vreeland)

No Data

Appleton, WI

Precision Flexo & Gravure

No Data

Englewood, CO

5/13/25

No Data

Acquisition

Gravure & flexo press supplies

Link

Ironmark (Port co. Post Capital Partners)

$51.4

Annapolis Junction, MD

Vista One Marketing

No Data

Gadsden, AL

5/9/25

No Data

Acquisition

Digital marketing services

Link

GroupeStahl

No Data

Saint Clair Shores, MI

TKO Sales

No Data

Pompano Beach, FL

5/8/25

No Data

Acquisition

Heat transfer printing

Link

Sample News Group

No Data

State College, PA

Cortland Standard Printing

No Data

Cortland, NY

5/8/25

No Data

Ch. 7 Asset Sale

Community newspaper

Link

Arkansas Graphics

No Data

Little Rock, AR

TCP Print Solutions

No Data

Little Rock, AR

5/6/25

No Data

Acquisition

Commercial printing

Link

Welch Packaging Group

No Data

Elkhart, IN

JaMar Packaging

No Data

West Chicago, IL

5/5/25

No Data

Acquisition

Corrugated boxes

Link

Schumacher Family

No Data

Andalusia, AL

Andalusia Star-News (+ 3 Titles) (Prop Boone Newsmedia)

No Data

Andalusia, AL

5/1/25

No Data

Acquisition (Cribb & Associates)

Community newspaper

Link

SupplyOne (Port co. Wellspring Capital)

No Data

Newtown Square, PA

The BoxMaker

No Data

Kent, WA

5/1/25

No Data

Acquisition

Corrugated boxes & displays

Link

   

2025 May - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries

Filing Party

Date Case Filed

Pre-Petition Revenue (US$Mil)

Case #

Filing Party Address

Circuit

Region & City

Judge

Attorney for Debtor

Notes

Chapter 11 Filings:

Envelope Mart of Northeast Ohio, Inc.

5/18/25

No Data

25-12125

Elyria OH

6th

Northern OH Cleveland

Suzana Krstevski Koch

Michael A. Steel

Envelope printing & manufacturing

Elite Printing & Packaging Inc.

5/5/25

No Data

25-41743

Hazelwood, MO

8th

Eastern MO St. Louis

Bonnie L. Clair

Spencer P. Desai

Print management & fulfillment

Chapter 7 Filings:

No Chapter 7 Filings Found this Month

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		2025 May - Non-Bankruptcy Closures in the Printing, Packaging, Paper & Related Industries
		Closed Company / Facility	Date of Closure	Pre-Closure Revenue (US$Mil)	Closing Address	Related Party	Related Party Address	Date Closure Public	Notes	Press Releases
		Edition One Books	Aug-25	No Data	Richmond, CA	None	N/A	May-25	Digital book manufacturing facility	Link
		Interstate Printing	6/4/25	No Data	Omaha, NE	None	N/A	May-25	Commercial printing	Link
		Willamette Print & Blueprint	Apr-25	No Data	Portland, OR	None	N/A	May-25	Reprographics & wide-format printing	Link

Challenges and Opportunities: Hardware versus Software – June 2025 M&A Activity

July 6, 2025, 7:44 pm

≪ Previous: Is M&A Activity in Commercial Print Poised for a Comeback? – May 2025 M&A Activity

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Recent deal activity and distress filings draw a clear line of demarcation through institutional investors’ view of the current printing and packaging landscape. The market continues to reward software-driven, workflow-focused businesses, while hardware-centric ventures face the constraints of tighter capital equipment budgets, long-term planning timeframes, scale needed to manufacture high-tech equipment, and service staff requirements that challenge even the most innovative companies.

Software and Workflow: Sticky, Scalable, Recurring, and Attractive

Private equity and strategic buyers remain hungry for platforms that keep print profitable and operate behind the scenes. Vista Equity Partners’ acquisition of Amtech Software, a packaging industry MIS provider, underscores the appeal: mission-critical, recurring-revenue software that sticks with converters for years, often decades. While the Amtech name may not be well-known to many readers of The Target Report, for those in the label printing and converting business, the company’s Label Traxx software system is likely familiar. Amtech is the developer of the EnCore ERP system for corrugated and folding carton manufacturing, as well as the Axiom software program for sheeting operations.

Amtech is a classic example of the most common PE-backed strategy: acquiring a privately held family business, adding related “bolt-on” businesses that enhance depth within a specific market to build value, and then exiting through a sale to another PE firm that will continue the growth. Amtech, based in Fort Washington, Pennsylvania, was founded in 1981 and remained a family-owned company until August 2021, when it was acquired by its first institutional investor, Peak Rock Capital. Changes to the Amtech platform completed under Peak Rock’s ownership include the acquisition of Label Traxx in April 2024, the expansion of the company into new geographic markets, and, critically, converting the company’s offerings to a recurring subscription model. What could be better? Recurring revenue from an industry, packaging, that is itself attractive to financial investors due to its recurring nature.

Print Eps (né eProductivity Software) snapped up Avanti Systems from Ricoh. It’s another sign that the Management Information System (MIS) and Enterprise Resource Planning (ERP) layers of the industry continue to consolidate under technology specialists who know how to drive margins by building scale via the acquisition of competitive systems, cross-selling into preferred platforms, and cementing recurring revenue relationships with customers.

Avanti, an early adopter of full cloud-based deployment, was acquired by Ricoh in 2017. It was another one of those head-scratching strategies in which print equipment manufacturers jump into the MIS/ERP software world, reminiscent of EFI’s acquisition of and long-term effort to integrate the Printcafe collection of legacy print-MIS system companies. Eventually, EFI decided to focus on its Vutek, Reggiani, Cretaprint, and Nozomi equipment lines, and in 2022, spun out its MIS software division in a sale to PE firm Symphony Technology Group

Ricoh, like EFI, eventually realized that its goal to integrate business management software with its machine-based workflow was misguided. In the sometimes circular world of M&A transactions, Avanti ends up back in the fold with the former EFI-owned suite of print MIS software offerings.

Disruptive Hardware-Centric Ventures: Capital Hungry and Vulnerable

In stark contrast, innovative hardware-centric ventures are currently showing deep cracks.

Landa Digital Printing, the high-profile Israeli-based press innovator, filed for insolvency with reported debts of $516 million and assets of only $127 million (excluding the potential value of its intellectual property). Founded by Benny Landa, the visionary inventor and entrepreneur behind the development and launch of the revolutionary Indigo line of digital printing machines, the company spent over a decade developing its “nanographic” technology. Despite splashy launches and global demos, the expensive path from prototype to profitable installed base proved too long.

In 2021, with markets and print demand seemingly ready to rebound after the Covid lockdown, Landa Digital Printing was planning to merge with a SPAC (special purpose acquisition company, aka a “shell company”). At the time, press reports indicated that Landa was expecting the company to achieve a $2 billion valuation based on the money to be raised by the SPAC after the merger. As it turned out, that deal never materialized, and private investors continued to pour money into the company. Collectively, the private investors and secured creditors ponied up in excess of $1.3 billion, including more than $220 million from founder and master pitchman Benny Landa.

At its peak, Landa Digital Printing employed about 500 people, mainly in Israel. That number has declined with more layoffs to occur as part of the company’s restructuring efforts. The company has sustained losses every year since its founding in 2011. The company reported a loss of $148 million on sales of $35 million, and a loss of $164 million on sales of $59 million, in the years 2022 and 2023, respectively, the first years that machines were commercially available (alpha and beta test models have been out since 2017). Although results for 2024 have not been published, it appears that many of the 50 orders reportedly placed at Drupa 2024 have not materialized or have been substantially delayed, with only 11 of those orders reportedly fulfilled.

Nonetheless, Benny Landa is not someone to count out easily. He went through a very similar process with the introduction of Indigo printing technology and machines. The Indigo venture was quite dicey for several years, with layoffs and many, many complaints about the reliability of the machines. In 2002, HP made a strong commitment to the digital color printing business and acquired Indigo for $830 million. The sale to HP was not the home run that Landa wanted, with the amount paid by HP roughly equal to Indigo’s 1994 valuation when the company went public. However, given the state of the company at the time, it was considered a brilliant exit for Benny Landa and the investors. With HP’s support, world-class organization, and commitment to addressing quality issues, the Indigo line of presses went on to set the standard for high-fidelity digital-color production machines.

Landa’s fall into insolvency comes on the heels of another blow to the Israeli digital printing universe. Digital equipment maker Highcon Systems Ltd., in which Benny Landa has also invested, known for its game-changing digital die-cutting and creasing machines, filed for insolvency earlier this year. When Highcon was initially floated on the Tel Aviv Stock Exchange, it had a total market value of approximately $110 million. At the time of the insolvency filing in March, the market value had dropped to approximately $1.1 million, with only 20 employees remaining to maintain minimal operations. As of the date of this writing, the remnants of the company are still for sale under the supervision of the Israeli Insolvency Courts.

Both the Landa and Highcon collapses show just how unforgiving the economics of capital-intensive equipment can be when market adoption lags behind investors’ expectations. Innovative equipment manufacturers must fund costly installations, spare parts inventory, installation and service teams, and global demos for years before sales volumes reach sustainability. The time delay is simply a runway that is too long, and in the case of Landa and Highcon, exceeded the patience of their investors.

Geopolitical Events Add Pressure to Israel’s Print Equipment Innovators

The back-to-back failures of Landa and Highcon also reveal how the current geopolitical disruption is magnifying risk for hardware OEMs. Israel’s ongoing conflict since October 2023 hit its digital print cluster particularly hard. According to reports in the Israeli financial press, more than 25% of the Landa company’s local workforce, including key engineering and field service staff, has been called up for extended reserve duty since the war began, resulting in delays to R&D and on-site installations. Landa also cited maritime shipping delays due to Houthi attacks that created difficulties using the Suez Canal as a major challenge. Additionally, wartime security restrictions slowed the import of precision parts and shipments of equipment. Travel advisories complicated demos and pushed orders into longer cycles.

In part, due to global economic and political uncertainty, but of special concern related to Israeli companies, deliverable orders dried up. This, in turn, led Landa’s investors to cease funding the company, and subsequently resulted in the filing for Chapter 10 insolvency and protection in the Israeli courts. While the war did not cause the underlying problems, it amplified them. The current external shocks helped push these leading-edge hardware-centric companies, which were already stretched thin, over the financial cliff.

In March, when Highcon announced that it was winding down operations, it cited uncertainty surrounding US policies on tariffs and related fluctuating trade policies. While Highcon had been struggling for quite some time to retain a full staff, as was reported in the press more than a year prior to the initiation of the trade war, the company believed that the threat of tariffs created a fear of making larger capital equipment investments among many companies around the globe.

Steady Cash Flow Versus Game-Changing Technology

A pattern emerges from recent transactions involving companies that support and equip print and packaging providers. Software and workflow platforms remain prime targets for smart money; they are customer-sticky, margin-friendly, and don’t carry the financial drag of inventory or parts logistics. Hardware-centric ventures face a significantly tougher road, requiring substantial capital investments upfront, a strong installed base, and patient investors willing to bridge the long gap from prototype to profit.

While the deals involving software do not generate exciting headlines like the launch of entirely new digital printing or finishing machines that utilize lasers, they illustrate a simple truth: there is opportunity in software platforms that operate behind the scenes, automating, integrating, and keeping the machines busy.

Clearly, it is a symbiotic relationship between new printing technology and software that supports running the businesses that use the new technology. Equipment manufacturers continually push the technical boundaries to develop faster and more advanced print technologies. These are not always initially financially successful. However, when the technology matures and the machines are installed, you can be certain that financial players will be ready to support the software companies that make those technologies more efficient.

   

2025 June - Mergers and Acquisitions in the Printing, Packaging, Paper & Related Industries

Deal Party #1 (Surviving Entity)

Pre-Deal Revenue (US$Mil)

Party #1 Address

Deal Party #2

Pre-Deal Revenue (US$Mil)

Party #2 Address

Date Deal Public

Deal Value (US$Mil)

Deal Structure (Intermediary)

Notes

Link

Plockmatic Group Pot co. Accent Equity

No data

Stockholm, Sweden

Renz

No Data

Heubach, Germany

6/27/25

No Data

Acquisition

Wire binding equipment

Link

TC Transcontinental

$2,005

Montreal, QC

Middleton Group

No Data

Markham, ON

6/23/25

No Data

Acquisition

Wide format & retail display

Link

Inland

No data

La Crosse, WI

Gopak

No Data

Delafield, WI

6/18/25

No Data

Investment

Flexible packaging

Link

Vista Equity Partners

No data

Austin, TX

Amtech Software (Port co. Peak Rock Capital)

No Data

Fort Washington, PA

6/16/25

No Data

Acquisition

Packaging MIS systems

Link

PAC Global

No Data

Markham, ON

Digital Imaging Association

No Data

Toronto, ON

6/11/25

No Data

Acquisition

Trade association

Link

Leader Paper Products

No data

Milwaukee, WI

Unique Envelope

No Data

Chicago, IL

6/4/25

No Data

Acquisition

Envelope manufacturing

Link

CCL Industries

$5,135

Toronto, ON

Humphreys Holdings Limited dba We Print Lanyards

$2.8

Long Eaton, UK

6/2/25

$3.9

Acquisition

Specialty printed products

Link

Seneca Label and Packaging

No Data

Franklin, PA

Seneca Printing Express

No Data

Franklin, PA

6/2/25

No Data

Acquisition (Graphic Arts Advisors)

Specialty label printing

Link

Print ePS (Div. eProductivity Software)

No Data

Pittsburgh, PA

Avanti Systems (Div. Ricoh Company, Ltd.)

No Data

Toronto, ON

6/2/25

No Data

Acquisition

MIS system for printing

Link

2025 June - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries

Filing Party

Date Case Filed

Pre-Petition Revenue (US$Mil)

Case #

Filing Party Address

Circuit

Region & City

Judge

Attorney for Debtor

Notes

Chapter 11 Filings:

Professional Mail Services, Inc.

6/23/25

No Data

25-02371

Raleigh, NC

4th

Eastern NC Raleigh

Pamela W. McAfee

Danny Bradford

Direct mail printing

Chapter 7 Filings:

No Chapter 7 Filings Found this Month

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Canada Insolvency Filings:

Trico Packaging & Print Solutions

6/4/25

No Data

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Ottawa, ON

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Commercial printing

Israel Insolvency Filings:

Landa Corporation Ltd. dba Landa Digital Printing

6/29/25

$18.2

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Rehovot, Israel

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Digital printing equipment

 

		2025 June- Non-Bankruptcy Closures in the Printing, Packaging, Paper & Related Industries
		Closed Company / Facility	Date of Closure	Pre-Closure Revenue (US$Mil)	Closing Address	Related Party	Related Party Address	Date Closure Public	Notes	Press Releases
		Desert Diecutting	7/17/25	No Data	Las Vegas, NV	None	N/A	Jun-25	Bindery & finishing services	Link