Blue Star Group continues its tidal wave of industry consolidation, set to pick up iconic STI Lilyfield from German-based STI Group. The leading point of sale specialist's state-of-the-art Padstow site will transfer back into Australian hands just five years after the German print group bought the business back in 2009.
The deal sees Blue Star mopping up the local market hot on the heels of its upcoming landmark 50/50 merger with IPMG, to form Australia's largest printing company. STI Lilyfield, formerly the iconic Lilyfield Group, will fall under the Blue Star banner and push a global POP (point of purchase) partnership between Blue Star and STI Group. The two companies have entered into a Heads of Agreement to sell the Australian business, which is expected to be finalised by May 30, 2014. Matt Aitken (pictured), Blue Star Group, group general manager print and mail, tells Print21 that the move is part of Blue Star's strident push into retail and other strong growth areas.
"The retail and POP space continues to be a growth market, driven by ideas and innovation. We approached STI about where they saw their strategy in the Australian market, and it was a great fit. We already have a strong retail client base, and we will now be able to bring a lot of that POP and POS work back in-house. Blue Star is already a very diverse business which gives us a strong value proposition for STI customers. Conversely, bringing on STI Lilyfield offers strong and unique capabilities to the Blue Star customer base," said Aitken.
He explains that they are tackling due diligence with an open mind, and have yet to make any decisions about consolidation. In addition to its leading POP business Lilyfield also has a strong complement of commercial printing clients. Blue Star's own retail wide-format capability has also steadily expanded in recent years, leaving enough overlap to put some cutbacks on the cards.
Aitken stresses, "We're not anticipating site consolidation, we are committed to manufacturing at the STI Padstow site. Of course, we will need to look at where the synergies are and also decide what equipment we will need, what might be surplus, and the possibilities for ongoing capital investment too."
Current STI Lilyfield managing director, Stephen De Lorenzo, will continue to head up the business from its present site in Padstow, Sydney. De Lorenzo has over 25 years POP industry experience and has steered the business through this expanding sector since June 2013, when he replaced former managing director Graham Trickey.
Founded in 1979, STI Lilyfield is one of the leading printing and point-of-sale companies in the country. It provides end-to-end commercial printing services and POS Solutions. The business was bought in August 2009 by Germany's STI Group, which operates nine manufacturing sites worldwide and reported $450 million group turnover in 2013. This landmark acquisition for Blue Star comes as it prepares to merge with IPMG, to form Australia's largest printing company.
According to Blue Star's official statement, this new business will offer brand owners and retailers a winning combination of print technology and industry expertise, and expand Blue Star's POP offering. The statement adds, "This will provide access to both global and local solutions being delivered by a long standing and financially strong Australian business."