Richard Rasmussen's Market Watch - April 2014
All the who, what, when and where of the local printing industry, all wrapped up with a bow. Richard Rasmussen, director of Ascent Partners, provides his monthly update on all the industry’s merger, acquisition, and closure activity as well as the latest major equipment sales and installations.
Clearly the standout for the month was the Focus Press story, first with the announcement that they were on the market, then with Mark Shergill, owner of recently acquired companies, BPA and Troedel – Docucopy (VIC), and Dynamic Print Communications (QLD) as well as his own Print Warehouse, had purchased the business. The Wollongong plant, recipient of a $6.1 million Government grant, was later announced to be closed, the ACT business to be liquidated and Shergill’s existing Print Warehouse to consolidate into the Strathfield site. Focus Press was a major player in the NSW market with a reported annual turnover of $40,000,000.
Almost lost amongst the Focus story, was the sale of another major NSW printer, STI Lilyfield to Blue Star Group. This was only five years after the German based STI Group purchase the Sydney icon.
Olympus Forge (Vic) was liquidated, and CBD Printing, trading as Snap O’Connell, Snap Martin Place and Snap Docklands finally had the creditor’s meeting for voluntary creditor’s liquidations.
On a more positive note, BB Print (QLD) opened new premises, as did AFI Branding (VIC).
On the supplier side, locally Ricoh opened new premises in NSW and “became one” with Lanier. Globally, we also saw Flint Group taken over by merchant banker Goldman Sachs, in partnership with Koch Equity Development LLC.
Famed industry inventor of Memjet techonology, Kia Silverbrook, had his firm, Silverbrook Research liquidated. A name change was made to Worldwide Specialty Property Services on the same day the liquidator was appointed.
Major Equipment Sales and Installations.
Four offset press were reported as sold or installed – In WA, Crystal Print purchased a new Heidelberg XL SM 75 press, in NSW Hero Print a new Komori GL 540 and Who Printing, a Heidelberg SX 52 press. Coaster Printers in QLD, upgraded to a used Komori five colour 28 inch press.
Opus purchased two Fuji Xerox Impika inject machines – an Evolution 20 inch and a 1400 20 inch.
In the NT, Sign City purchased three HP wide format machines, an FB 500, and two L26500 Latex units.
On the bindery side, from Curries mobile showroom, Bendigo printer, Mulqueen Printers purchased an Horizon VAC 1000 A and SPF 200 L stitchliner, whilst Hansen Print and Design (SA) purchased a Horizon CRF 362 Cutter Creaser.
Finally in NSW, Next Printing purchased a Durst Rhotex 322 Large Format Dye Sublimation printer.
Mergers and Acquisition Webinar – Wednesday 14th May.
Rasmussen is running a webinar on 14.5.14 on mergers and acquisitions. Click here to register.
The webinar will cover:
- A review of Market Activity – What’s happening to the Australian printing industry?
- Rationale behind mergers and acquisitions – is it for you?
- Organic Growth or merger / acquisition – the pros and cons
- The M&A team Targeting / Developing a brief
- The Deal – What to look for / key numbers / ROI Post Deal integration.
Businesses for Sale.
Due to the recent sale of three businesses in Melbourne, Ascent Partners have only two businesses on the market – one in WA and one in VIC. More businesses are required to satisfy demand. See www.ascentpartners.com.au for more details.