Private equity interest in packaging printing and manufacturing remains high; while in general there is much less interest in the commercial printing and publishing sectors. This was the overwhelming response that I received during the past month in my conversations with partners and professionals from more than sixty private equity firms, in which I asked about their interest in the various industries that put “ink on substrates.” My impressions were borne out as PE funds announced significant deals in November, all related to the packaging sector.
Multi Packaging Solutions, recently acquired by Madison Dearborn Partners from Irving Place Capital, announced that the company has agreed to a merger with Chesapeake Services Limited, backed by The Carlye Group. Multi Packaging Solutions is a US-based packaging printer with several locations in Europe. Chesapeake Services is a UK-based packaging printer with multiple plants throughout Europe, several plants in the US, and two plants in China. Both companies have a major commitment to the healthcare and pharmaceutical industries, with many facilities dedicated to the special needs of these markets. Each company also has expertise in consumer branded packaging; Multi Packaging Solutions brings strengths in the entertainment industry; and Chesapeake Services brings four plants that manufacture plastic containers to the combined enterprise. Together, these two PE-backed companies begin to form a new global powerhouse in the business of printing packaging.
Transilwrap, a manufacturer, converter, and distributor of plastic films, was sold by its PE owner, Nicolet Capital Partners, to another fund, The Jordan Company. The company’s products are used in a wide variety of printing and packaging applications.
Paper merchants were active. Mac Papers, the leading distributor of paper to printing companies in the Southeast US, hopes to offset the declining volume of its printing papers business with its acquisition of Alles. The acquired company distributes a wide variety of packing supplies and equipment. Rather than branching out from its paper distribution business, Bradner Central, a paper merchant with locations throughout the Midwest and Texas, called it quits after more than 160 years as a family-owned company, and agreed to be acquired by Central National-Gottesman. This is Central National-Gottesman’s sixth acquisition of a paper merchant in the past four years, continuing the trend towards vertical integration of the fine printing paper business, exemplified by International Paper’s xpedx business unit.
In addition to announcing its merger in November, Multi Packaging Solutions is listed on our deal log for plant closures. The company will be shutting down its printing facility in Terre Haute, Indiana. The plant, formerly owned by Ivy Hill, produces packaging for audio and video products. Demand for those products has declined, leading to the decision to close the plant.
In a continuation of a trend we have noted before, another regional newspaper has announced that it plans to shut down its own printing plant and outsource the printing of its paper to another newspaper with a more efficient printing facility. In making the announcement, the publisher of the Star-Telegram of Fort Worth, Texas, stated that he planned to focus on the paper’s core competencies and produce quality journalism for readers and serve advertisers with print and digital solutions. The Dallas Morning News organization landed the contract to print the Star-Telegram.
Multi Packaging Solutions, recently acquired by Madison Dearborn Partners from Irving Place Capital, announced that the company has agreed to a merger with Chesapeake Services Limited, backed by The Carlye Group. Multi Packaging Solutions is a US-based packaging printer with several locations in Europe. Chesapeake Services is a UK-based packaging printer with multiple plants throughout Europe, several plants in the US, and two plants in China. Both companies have a major commitment to the healthcare and pharmaceutical industries, with many facilities dedicated to the special needs of these markets. Each company also has expertise in consumer branded packaging; Multi Packaging Solutions brings strengths in the entertainment industry; and Chesapeake Services brings four plants that manufacture plastic containers to the combined enterprise. Together, these two PE-backed companies begin to form a new global powerhouse in the business of printing packaging.
Transilwrap, a manufacturer, converter, and distributor of plastic films, was sold by its PE owner, Nicolet Capital Partners, to another fund, The Jordan Company. The company’s products are used in a wide variety of printing and packaging applications.
Paper merchants were active. Mac Papers, the leading distributor of paper to printing companies in the Southeast US, hopes to offset the declining volume of its printing papers business with its acquisition of Alles. The acquired company distributes a wide variety of packing supplies and equipment. Rather than branching out from its paper distribution business, Bradner Central, a paper merchant with locations throughout the Midwest and Texas, called it quits after more than 160 years as a family-owned company, and agreed to be acquired by Central National-Gottesman. This is Central National-Gottesman’s sixth acquisition of a paper merchant in the past four years, continuing the trend towards vertical integration of the fine printing paper business, exemplified by International Paper’s xpedx business unit.
In addition to announcing its merger in November, Multi Packaging Solutions is listed on our deal log for plant closures. The company will be shutting down its printing facility in Terre Haute, Indiana. The plant, formerly owned by Ivy Hill, produces packaging for audio and video products. Demand for those products has declined, leading to the decision to close the plant.
In a continuation of a trend we have noted before, another regional newspaper has announced that it plans to shut down its own printing plant and outsource the printing of its paper to another newspaper with a more efficient printing facility. In making the announcement, the publisher of the Star-Telegram of Fort Worth, Texas, stated that he planned to focus on the paper’s core competencies and produce quality journalism for readers and serve advertisers with print and digital solutions. The Dallas Morning News organization landed the contract to print the Star-Telegram.
| 2013 November - 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 | |||
| Jordan Company | No Data | New York, NY | Transilwrap | No Data | Franklin Park, IL | 11/22/13 | No Data | Acquisition | Packaging films | Link | |||
| Print NW | No Data | Lakewood, WA | ABC Printing | No Data | Lacey, WA | 11/20/13 | No Data | Acquisition | Commercial printing | Link | |||
| Jostens (Sub. of Visant) | $1,155 | Minneapolis, MN | American Achievement | No Data | Austin, TX | 11/19/13 | No Data | Acquisition | Yearbooks & keepsakes | Link | |||
| Multi Packaging Solutions | No Data | New York, NY | Chesapeake Services Limited | No Data | Nottingham, England, UK | 11/19/13 | No Data | Merger | Packaging (combined $1.4Bil revenue) | Link | |||
| Safeguard (Sub. of Deluxe) | $1,550 | Dallas, TX | Prime Business Solutions | No Data | Akron, OH | 11/15/13 | No Data | Acquisition | Printing & promotional items | Link | |||
| Electronics for Imaging (EFI) | $704.6 | Foster City, CA | Lector Computersysteme | No Data | Mönchengladbach, Germany | 11/13/13 | No Data | Acquisition | MIS systems for printing | Link | |||
| Central National-Gottesman (Lindenmeyr Munroe) | No Data | Purchase, NY | Bradner Central | No Data | Elk Grove, IL | 11/4/13 | No Data | Asset acquisition | Paper merchants/distribution | Link | |||
| SourceOne Output Technologies | No Data | Little Rock, AR | Wheeler Printing | No Data | Hot Springs, AR | 11/4/13 | No Data | Acquisition | Commercial printing | Link | |||
| Mac Papers | No Data | Jacksonville, FL | Alles | No Data | Hialeah, FL | 11/1/13 | No Data | Acquisition | Packaging supply distribution | Link | |||
| Creative Graphics | No Data | Prior Lake, MN | B2B | No Data | St. Paul, MN | 11/1/13 | No Data | Asset acquisition | Marketing services | Link | |||
| 2013 November - Bankruptcy Filings in the Printing, Packaging, Paper & Related Industries | ||||||||||||
Filing Party | Date Case Filed | Pre-Petition Revenues ($Mil ) | Case # | Filing Party Address | Circuit | Region & City | Judge | Attorney for Debtor | Notes | |||
| Chapter 11 Filings: | ||||||||||||
| Marketing IV, Inc. | 11/19/13 | No Data | 13-44895 | Elmhurst, IL | 7th | Northern IL Chicago | Janet S. Baer | Richard G. Larsen | Commercial printing | |||
| Chapter 7 Filings: | ||||||||||||
| DFDC Enterprises Inc | 11/27/13 | No Data | 13-45911 | Bloomingdale, IL | 7th | Northern IL Chicago | Donald R. Cassling | Timothy M. Hughes | Point-of-Purchase displays | |||
| Integrity Packaging | 11/6/13 | No Data | 13-36946 | Houston, TX | 5th | Southern TX Houston | David R. Jones | Matthew Scott Okin | Folding cartons | |||
| 2013 November - 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 | |||
| M&M Printing | Dec-13 | No Data | Trenton, NJ | None | N/A | 11/11/13 | Printing & copying | Link | |||
| Star-Telegram Printing Facility | 1st Qtr '14 | No Data | Edgecliff Village, TX | The Dallas Morning News (Gained printing contract) | Plano, TX | 11/7/13 | Newspaper outsourcing print operations | Link | |||
| Multi Packaging Solutions - Printing Facility | Oct-13 | No Data | Terre Haute, IN | Multi Packaging Solutions | New York, NY | 11/4/13 | Formerly an Ivy Hill plant | Link | |||