In the first of a five part series Ascent Partners director, Richard Rasmussen, lists the industry’s major market activity around consolidations, takeovers, sales, acquisitions, closures, and major equipment sales and installations that took place in financial year 2012.
Part 1 – The Big End of Town
It certainly was an eventful year with all of the major print groups in the news. Some courted suitors (PMP, Salmat BPO); there was some major plant consolidation within Geon, PMP and Colorpak; the Sands Print Group (VIC) and Australian Envelopes (VIC) folded, and IPMG announced it would close Craft Printing.
The web printers were busy purchasing 80-96 page Lithomans (Franklin, IPMG, PMP); IPMG planned to relocate to Warwick Farm, Opus merged with McPhersons, and SEMA entered administration (later announced that there was a management buyout).
The year ended with the major Fairfax announcement that it would close its Chullora (NSW) and Tullamarine (VIC) newspaper printing plants.
FY 2013 shows no signs of this activity abating, especially with the imminent sale of Blue Star, and Australia Post’s entry into the BPO market place with the purchase of two Océ ColorStream 3700 inkjet presses.
Below is a list, by group, of the major news announcements:
Blue Star
- July 11 – call for bondholder’s concessions
- Aug 11 – Bondholder’s vote to stave off receivership
- Blue Star’s PE funder, Champ, purchases Ooh! Media
- July 12 (FY 2013) – The business is up for a quick sale
Geon
- Move to single site operation in Sydney
- Tempe (NSW) warehouse to relocate to Parramatta (NSW) and Eagle Farm (QLD)
- Move Brunswick site (VIC) to Mt Waverley (VIC) and Banksmeadow (NSW)
- Close Docklands (VIC)
PMP
- Close the Scribo book distribution business
- PMP to move Clayton (VIC) bindery to NSW
- Purchase a Lithoman 96 page web for Perth
- Receive a $250 million offer from TMA
- Reject TMA from further due diligence because of lack of proof of financial wherewithal
IPMG
- Announce relocation from Alexandria (NSW) to Warwick Farm (NSW)
- Announce closure of Craft (NSW)
- Purchase Lithoman 96 page web (twin 48 pp) for Warwick Farm (NSW)
- July 12 (FY 13) – announce Ferag purchase
Franklin
- Installed Lithoman 80 page web
Colorpak
- Consolidate Villawood (NSW) into Regent Park (NSW) facility
- Close CCH Reservior (VIC) plant – relocate to Braeside (VIC) and Mt. Waverley (VIC).
Amcor
- Purchase Aperio Group
Fairfax
- Joint venture called off between Fairfax and News (local printing of newspapers)
- Announcement that it would close Chullora (NSW) and Tullamarine (VIC) newspaper plants / move to tabloid size
Opus / McPhersons
- McPhersons to purchase HP T400 high speed colour inkjet web press
- Opus to merge with McPhersons
- July 12 (FY 13) – announced that McPhersons Printing (VIC) may relocate to Vega’s (VIC) premises
SEMA
- Enter voluntary administration
- Management buy out
Australian Envelopes (VIC)
- Liquidation
Sands Group (VIC)
- Liquidation
- Part of group purchased by TIC Group
- BPA (VIC) purchases client list and brand
Wellcom
- Takes in iPrint (purchases the other 50% share)
Aust Post / Salmat
- Aust Post identified as likely suitor of Salmat BPO division
- July 12 (FY 13) – Aust Post buys 2 x Oce Colour Stream 3700 Inkjet Presses
Ascent Partners publishes Market Watch monthly via email bulletin. You can subscribe to this free bulletin on our web site, www.ascentpatners.com.au, or download quarterly PDF bulletins.
Next week, in part 2 of “Market Watch FY 2012 – A Year in Review”, we provide an overview of the suppliers to the industry - the sale and acquisitions, the consolidations and the closures.