Industry doyen to quit in landmark deal with Michael Wu of Ability Press and Moody Abrogatah of Docklands Press that was sealed with a handshake in the Lorimer Street boardroom.
A merger between Wu and Abrogatah has created a new printing company group that will buy out the Todisco family from their iconic Mercedes Waratah and M&M Binders business in Melbourne’s Docklands. The new, as yet unnamed group, will move into the Lorimer Street premises as soon as the lease can be organised, taking over all the equipment including three large Heidelberg printing presses and the bindery.
According to Michael Wu, the sale will see the creation of one of the largest commercial sheetfed printing companies in the southern capital. In addition to his own Ability Press, he will fold in On Demand and Miracle Binding, while Moody Abrogatah will bring Ability Press to the table. With the addition of the Todisco businesses it will create a company with a turnover of approximately $45 - $55 million.
The complex deal came together remarkably quickly with the two principals in the new company only meeting for the first time a few months ago. According to Abrogatah, the merger was sealed during a one hour meeting while the buyout of Mercedes Waratah and M&M took about the same length of time for the partners to discuss and agree with Frank Todisco.
There were no lawyers engaged in the initial transaction, with all three sealing the deal on a handshake. A formal agreement will be in place by the beginning of September. “My word is my bond,” said Abrogatah last night. “I’ve known Frank and the Todisco family for 30 years. I’ve a lot of respect for them.”
Michael Wu says the two were independently looking for the right partner in order to grow. “There is a good synergy between us. After we met we came up with this idea. Frank Todisco has built world class printing infrastructure. It’s a set up any printer would dream of,” he said.
The new company will do a stocktake on the abundant equipment it now possesses before deciding what to keep and what to rationalise. Neither business was operating at full capacity so there is plenty of room to move. Although no time line has been decided it is expected all three will eventually be consolidated to the Lorimer Street premises, which is considered a world-class Heidelberg facility.
The deal marks the end of Frank Todisco’s long career in Melbourne printing. Although in recent years he has left the running of the businesses to his sons, Michael with Mercedes Waratah and Lenny in charge of M&M Bindery, he has always been the deciding force. After losing PrintLinx in 2011, he maintained a low profile but in the years before he enjoyed a respected and sometimes controversial reputation in the printing industry. Another son, Peter Todisco continues to run Print Applied Technologies in Tasmania.
Michael Wu came to prominence with his buyout of Bruce Peddlesden’s On Demand two years ago. One of the largest digital printers in the industry, it topped a stellar rise for the newcomer following his purchase Ability Press and Miracle Book binding.
The third member of the troika, Moody Moody Abrogatah, started his Docklands Press 35 years ago and is well known throughout the Melbourne printing establishment. “This is a great deal with a good future. Now we just want to get on making money,” he said.
A statement released by Mercedes Waratah confirmed that the Todisco family intend to leave the printing industry to pursue other ventures.
The Todisco family, which owns the Mercedes Waratah group, including M&M Binders, has a long history in print and a great fondness for the industry. They have, however, decided to exit this business to concentrate on other interests going forward.
Mercedes Waratah and M&M Binders are long-established and respected industry names, and it is clear from evidence around the world that consolidation is a key way forward to ensure the ongoing strength of print companies and of the industry in general.
Many of the details of the final agreement are yet to be finalized at this stage, and the terms of the HOA mean that Mercedes Waratah is unable to comment on matters which are ‘commercial in confidence’. In particular, details of financing and the future management structure would be premature.
Mercedes Waratah believes that the agreement which is now being finalized is a very positive move and is in the best interests of their staff, their clients and the wider industry. This new agreement will leave the business in good hands and sound shape for future success.