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It was another banner year for mergers and acquisitions in the business printing industry. In 1997, the biggest news was Standard Register's Dec. 1 agreement to acquire UARCO, a $489 million manufacturer based in Barrington, Ill. The acquisition, expected to be completed by the end of last month, will make Standard Register a $1.4 billion company and the second largest of the national direct-selling manufacturers. Moore Corp. is still by far the biggest of the majors, with 1996 sales of $2.5 billion.
Mergers and Acquisitions in 1997Meanwhile, Wallace Computer Services Inc. also surpassed the $1 billion mark by acquiring a $437 million commercial printing firm. Reynolds & Reynolds purchased Crain-Drummond from UARCO earlier in 1997. Both Reynolds and Wallace now have annual sales around $1.3 billion.
Some of the other most talked-about acquisitions last year were made by two companies outside the printing industry-Corporate Express and U.S. Office Products. These office supply giants made nearly a dozen acquisitions between them in 1997 to become bona fide players in the industry.
The following is a partial list of mergers and acquisitions that occurred from January to November last year. (Some acquisitions from early December are also included.) Unless otherwise noted, the companies listed are manufacturers. This list also includes some transactions from late 1996 that, because of press time constraints, did not make it onto the 1996 list. These items are marked with an *.
ADP Dealer Services Group, Hoffman Estates, Ill., acquired Picture Perfect Promotions Inc., Irvine, Calif., in March. Picture Perfect Promotions provides on-demand direct mail marketing to automotive dealers and manufacturers nationwide. ADP competes with Reynolds and Reynolds in providing turnkey computer systems to auto and truck dealers.
American Pad & Paper, a $600 million manufacturer of paper-based office products in Dallas, acquired Shade/Allied Inc., Green Bay, Wis.
* Belknap Business Forms Inc., Mayville, N.Y., acquired the distributor business of Precision Printing Company, a Pittsburgh manufacturer, in December 1996. Precision Printing sold the direct-selling part of its business to Hudson Integrated Products Inc. in Akron, Ohio. Precision's plant was closed.
BIC Corp., Milford, Conn., purchased Sheaffer Group, a $50 million worldwide manufacturer and supplier of premium writing instruments.
Bregg Data Forms Inc., Hauppauge, N.Y., sold its mailer business to Poser¨, Fairhope, Ala. Bregg closed the remainder of its business July 31.
Central States/Multiplex, Dewey, Okla., purchased Vanier's Suwanee, Ga., plant and most of Vanier's distributor accounts from Reynolds & Reynolds, Dayton, Ohio. Reynolds purchased Vanier from ABP in early 1997.
Champion Industries Inc., Huntington, W.Va., purchased Blue Ridge Printing Company Inc., a $6 million Asheville, N.C., color printing firm specializing in sales to advertising agencies. Blue Ridge kept its name and operates as a division of Champion.
* Consolidated Graphics Inc., Houston, acquired Direct Color, a $12 million commercial printer in Long Beach, Calif., in November 1996. Consolidated Graphics is a national printing group with $155 million in sales and locations in 14 markets, including Dallas; Denver; Raleigh-Durham, N.C.; Seattle; and Sacramento, Calif.
Corporate Express Inc., Broomfield, Colo., purchased Data Documents Inc., an Omaha, Neb., direct-selling manufacturer, in November. Data Documents has $250 million in annual sales; Corporate Express is a $3.2 billion company. In addition, Corporate Express purchased Computer Software Inc., Norcross, Ga., the developer of TopForm¨ distributor operations software. It also acquired Bank 'N Business Systems, a distributorship in Shreveport, La.; Dixie Data Products, a Jackson, Miss., distributorship; and Inform Inc., a Nashville, Tenn., distributorship.
DAC Vision Inc. sold its label manufacturing division, DAC Labels, to Dan Stafford of Fort Worth, Texas, in April. DAC Labels retained its name, and it continues to sell through distributors.
Data Documents Inc., Omaha, Neb., acquired Moore Labels Inc., a $13.5 million Wichita, Kan., supplier of pressure sensitive labels. Moore Labels is not affiliated with Moore Corp. Data Documents subsequently was purchased by Corporate Express.
DEC International Inc., Atlanta, acquired Label America Inc., a manufacturer in Stone Mountain, Ga. It also acquired AmeriComm Direct Marketing Inc. DEC is the parent company of Transkrit Corp., Roanoke, Va., and Label Art/Short Run Labels, Wilton, N.H. DEC has since changed its name to AmeriComm Holdings Inc.
Form Service Inc., Schiller Park, Ill., purchased the distributor business of Vanier's former Sussex, Wis., plant from The Reynolds and Reynolds Company, Dayton, Ohio, in March. Reynolds had acquired the plant as part of its purchase of Vanier Graphics Corp. in January. Form Service was subsequently acquired by Vallis-Wngroff Business Forms and is now known as Vallis Form Service.
FormsPrint Resources Inc., a distributorship in Greensboro, N.C., merged with Document Images, a Greensboro reseller and integrator of imaging and COLD storage solutions.
Fox Tag & Label, Providence, R.I., acquired May Tag & Label's custom business in April. The purchase did not include May Tag & Label's only plant located in Hillside, N.J. That plant remained open and produces stock tags and labels.
The H.C. Miller Company, Milwaukee, a provider of custom printing, indexes and binders, acquired Avery Dennison's Specialty Products Business Unit in July. The unit includes Avery's binding, filing systems and legal index divider business segments.
IMTEC Corp., Bellows Falls, Vt., purchased MARKEM Corp.'s U.S. Customark custom bar code and label business. The sale included the Customark facility in Keene, N.H., equipment and inventory.
International Imaging Materials Inc. (IIMAK), Amherst, N.Y., agreed to merge with PAXAR Corp., which supplies identification and tracking solutions to retail and industrial customers. IIMAK, a manufacturer of bar code thermal transfer ribbons, functions as an independently operated, wholly owned subsidiary of PAXAR.
Kaye Smith Business Graphics, a regional direct-selling firm based in Renton, Wash., acquired the assets of CaliForms, a San Jose, Calif., commercial printer and forms manufacturer. CaliForms' San Jose plant will remain open.
The Leslie Company, a manufacturer of binders and presentation folders in Olathe, Kan., was wholly acquired by Jerald Byrd, one of its founding partners, in April.
Mail-Well Inc., Englewood, Colo., acquired The Allied Printers, a $17 million high-end commercial printer, and Griffin Envelope Inc., a $12 million manufacturer and distributor of envelopes in the Northwest. Both firms are based in Seattle. Mail-Well also purchased Murray Envelope Corp., Hattiesburg, Miss. Murray had 1996 sales of $48 million. In addition, Mail-Well agreed to acquire Color Graphics, a $22 million sheet-fed printer in Atlanta, and Golden Books' web and sheet-fed commercial printing facility in Cambridge, Md.
Mark Andy Inc., a manufacturer of narrow web label equipment in Chesterfield, Mo., acquired Express Flexographic Equipment Company Inc. Express Flexographic is a subsidiary of Graphics Management Inc., Topeka, Kan. Express Card and Label, a sister company of Express Flexographic and customer of Mark Andy's, was not part of the acquisition.
Martin Yale Industries Inc., Wabash, Ind., acquired Master Products Manufacturing Inc., a Los Angeles manufacturer of paper punches and catalog rack systems. It also purchased certain assets of Philadelphia-based Hunt Manufacturing's mailroom product line.
Merrill Corp., St. Paul, Minn., acquired Superstar Computing, an Eden Prairie, Minn.-based firm providing technology and software training for the real estate industry. Merrill has owned FMC Resource Management Company, a large distributorship in Monroe, Wash., since 1996.
Metro Graphic Communications Inc., a large distributorship in Gaithersburg, Md., acquired certain assets of Jade Business Products Inc., Herndon, Va.
Miami Systems Corp. Owner Sam Peters purchased the plastic card and label division of Bertek Inc., headquartered in Swanton, Vt. The division was renamed Bertek Systems Inc. and is not considered part of Miami Systems.
Moore Corp. Ltd., Toronto, acquired United Ad Label Company Inc., a Brea, Calif., label manufacturer. United Ad Label, which specializes in labels for the health care market, operates as a business unit of Moore's Labels and Labels Systems division. In addition, Moore acquired The Peak Technologies Group Inc., a $216 million bar code systems integrator based in Columbia, Md., and Colleagues Group plc, a $52 million direct marketing company in the United Kingdom.
Multiple Pakfold Business Forms, Dorval, Quebec, acquired Printers' Choice, a Montreal-based short run forms manufacturer. Printers' Choice equipment and staff moved to Multiple Pakfold's Dorval, Quebec, headquarters. Multiple subsequently was acquired by U.S. Office Products as part of its acquisition of Data Business Forms Ltd.
Oce N.V., The Netherlands, purchased Archer Management Services, New York. Archer provides business support outsourcing, including management of mail, reprographics, printing, records, equipment, supplies and professional staff. It will remain a stand-alone company. Oce has annual sales of $2.5 billion.
Outlook Group Corp. purchased the assets of R. P. Packaging's General Converting Division in Emeryville, Calif. Outlook Group is based in Neenah, Wis., and is the parent company of Outlook Label.
Phoenix Data Inc., Montgomery, Pa., acquired the rights to all repeat business of Priority Business Forms, a Johnston, R.I., manufacturer that closed its doors Nov. 30.
Porter Chadburn plc, the parent company of Lord Label and Lancer Label, acquired Double S Labels Ltd., a manufacturer of self-adhesive prime labels, and Double S Systems Ltd., a distributor of self-adhesive label applicators. Both companies are based in Bradford, England, and had combined 1996 sales of $8.5 million.
The Reynolds and Reynolds Company, Dayton, Ohio, acquired Crain-Drummond Inc., a wholly owned subsidiary of UARCO. Crain-Drummond, based in Boucherville, Quebec, had 1996 sales of $182 million (Canadian). Reynolds & Reynolds also acquired a stake in Kalamazoo Computer Group plc, a United Kingdom-based computer services company and a leading systems vendor for automotive retailers in the United States and Europe. Reynolds holds about 26 percent of Kalamazoo's outstanding shares on a fully diluted basis. Reynolds also sold its on-line car shopping service, DealerNet¨, to The Cobalt Group Inc., a large provider of Internet marketing systems for auto dealers.
S.D. Warren Company, Boston, agreed to sell its pressure sensitive business in Westbrook, Maine, to Spinnaker Industries Inc., a Dallas manufacturer that specializes in specialty adhesives. The sale was expected to become effective in early 1998.
Service Business Forms, Wichita, Kan., was purchased by Mark Woodman, owner of Printing Inc., a commercial printer in Wichita, in May.
John Jacobs, CFC, president of SNF Company Inc., Jackson, Mich., sold the furniture, fixtures and customer files of the forms side of the company to Roger Kuhl, an SNF sales rep and longtime employee. This new company was named Beacon Forms & Labels Inc. and remained in Jackson at a new location. Jacobs, will continue to work part time at SNF's bar coding division, Integrated Barcoding Systems Division, which is based in Ann Arbor, Mich.
Spectrum Systems & Resources Inc., Parlin, N.J., acquired Galaxy Systems and Resources Inc., Santa Fe Springs, Calif., in August. Spectrum is a Master VAR for JetForm Corp. and provides requisitioning software for distributors and manufacturers. Galaxy provides operations software for distributors.
Standard Register, Dayton, Ohio, signed a definitive agreement to acquire UARCO, Barrington, Ill., in December. Under the agreement, Standard Register will acquire all UARCO stock for $245 million and will not assume any of UARCO's debt. Standard Register had 1996 sales of $944 million; UARCO's sales were $489 million (excluding companies divested in 1997). The acquisition was expected to be completed by the end of last month.
Sovereign Business Forms Inc., Houston, acquired Forms Manufacturers Inc., a manufacturer in Girard, Kan., and Mutual Graphics Inc., a manufacturer in Powell, Tenn.
The TCH Group, Sacramento, Calif., purchased Ram Publications, an on-demand printing company in Santa Clara, Calif.
* Tully-Wihr Company, a large distributorship in Union City, Calif., acquired Forms Control Company, a Sacramento distributorship, in December 1996. Forms Control merged with Tully-Wihr's Colfax, Calif., sales office. Tully-Wihr also acquired Incentive Concepts, a San Ramon, Calif., ad specialty distributorship, in June.
U.S. Office Products Company, Washington, acquired Standard Forms Inc., a large New York-based distributorship, and Hano Document Printers Inc., a Springfield, Mass.-based manufacturer also owned by SFI. USOP also purchased Data Business Forms Ltd., a Brampton, Ontario-based manufacturer, and its subsidiary, Multiple¥Pakfold Business Forms, a Dorval, Quebec, manufacturer. In addition, it bought FMI Graphics, a Maryland Heights, Mo., distributorship, and United Envelope Co. Inc., a $100 million manufacturer in New York that owns Huxley Envelope, Mount Pocono, Pa.; Rex Envelope, New York; and Westshore Envelope, New York.
UARCO sold its York Tape and Label division, York, Pa., to Susquehanna Capital, a private investment company, in May. It also sold its Crain-Drummond division to Reynolds & Reynolds. UARCO subsequently agreed to be acquired by Standard Register.
Vallis-Wngroff Business Forms Company Inc., Cherryvale, Kan., acquired Form Service Inc., Schiller Park, Ill., in June. The combined company was named Vallis Form Service, and it has more than $45 million in sales.
Wallace Computer Services Inc., Lisle, Ill., acquired Graphic Industries Inc., a $437 million network of high-end commercial printing companies based in Atlanta. Earlier in the year, Graphic Industries acquired Bruce Offset Company, a $23 million Chicago commercial printing company. It also bought Harvey Press Inc., an $8.5 million sheet-fed and web-fed commercial printer based in New Orleans; Graphic Technologies, a Fort Lauderdale, Fla., commercial printer; LithoImage, an Austin, Texas, digital image processing company; and LithoPrint, a commercial printer in Austin. Also in 1997, Wallace acquired Moran Printing Company, a high-end commercial printer based in Orlando, Fla.
* Web Graphics, Glens Falls, N.Y., acquired the stock forms and imprinting division of Apex Business Systems, based in Houston, in March. The division consists of a variety of carbonless and carbon interleaved unit sets. In late 1996, Web merged its operations with Robinson Business Forms, a manufacturer in Austin, Minn. Robinson's name was changed to Web Graphics Midwest.
Western Atlas Inc., Beverly Hills, Calif., acquired Norand Corp., a Cedar Rapids, Iowa-based designer and developer of mobile computing systems and wireless data communication networks. Western Atlas combined Norand with its Intermec Corp. division, a supplier of bar coding systems headquartered in Everett, Wash. In October, Western Atlas spun off its Beverly Hills-based data collection business. It is now called UNOVA Inc.
Xerox Corp., El Segundo, Calif., acquired Delphax Systems, a Toronto-based manufacturer of high-speed electronic printing solutions. Delphax is now a wholly owned unit within the Xerox Production Systems Group. Previously, Xerox owned a one-third interest in Delphax Systems.
XYAN Inc., King of Prussia, Pa., purchased LEXPLEX, a provider of document support services for legal firms and corporate legal departments. It also acquired Demand Printing Inc., Newport Beach, Calif., and Olympian Graphics Inc., Oakland, Calif.
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