Posts Tagged ‘Market Watch’

  • Richard Rasmussen’s Market Watch – August 2013

    Richard Rasmussen, director of Ascent Partners, wraps up last month in the industry with more closures in the newspaper sector, Spectrum’s return to manufacturing in Christchurch, and a new label business is opened in the same city.

    Market Movements

    Fairfax and News Limited newspapers continued their plant closures, this time The Waikato Times (Hamilton, NZ) and Gold Coast Bulletin (QLD). APN also closed its Ballina site.

    Four sales / acquisitions were made – PMP Canberra / Focus Press (NSW), KB Print / Centurion (NZ), Top Print / CMYK Hub and finally the liquidated pre press house, Pageset, sold its clients base to Geoff Pearce.

    A new label business, Foxcil (NSW), was launched by Roger Kirwan and over in Christchurch, Spectrum opened a new plant after the earthquake forced it out of manufacture around two and half years ago. Focus Press (NSW) also opened its new $6.1 million Government funded site.

    In other news, Brand Print (VIC) moved into a larger site and Amcor announced it would demerge its Australasia Packaging Distribution business

    On the local supplier side DES and Finchers merged in WA whilst Minipak (NZ) moved to larger premises.

    Globally, HP opened a 3,000 square metre Scitex Ink factory next to its Indigo ink manufacturing plant. Kamma sold its bottle printer business to KBA, and newspaper systems vendors, Saxotech and DTI, merged with the help of a private equity firm, Vista Equity Group.

    Major Equipment Sales and Installations.

    Web printers, Franklin Web are installing a Lithoman 80 pp and PMP Clayton a 96 pp Duplex heatset web.

    Manroland sheetfed presses were also sold with Colorpak purchasing an R 706LTTLV press and  Hannapak and an undisclosed Melbourne printer also purchasing 706 presses. CMYK Hub installed a new Ryobi 920 five colour press in around July 2013 in their WA facility.

    Digital press sales / installations were also in the news – Hero Print NSW installed a Kodak Nexpress SX 3900 (March 13),  Excel (NZ) a Fuji Xerox I Gen 150, Wickcliffe (NZ) a I Gen 4 with finishing. Kosdown (Vic) installed the MGI Meteor DP 8700 XL and Rocket Print (NZ) an Indigo label machine WS 4600.

    HP had a good month with the reported installations of a Scitex FB 500 UV flat bed at Lotsa (QLD), a Designjet L28500 at Fineline (VIC), and at Quality Press (WA) a Scitex FB 700 and Designjet LX 26500.

    A Roland DG Pro 4 XF – 640 was installed at Brave Design (NZ) and Mezographic (VIC) installed a Fujifilm Uvistar Pro 8 Grand Format printer.

    Pre Press wise, the only reported installation was in New Caledonia where Editions and Impressions du Pacific installed a Heidelberg Suprasetter A75.

    On the Bindery and Finishing side, packaging printer, AMR Hewitt (Vic) installed a Heidelberg Varimatrix 82 CS diecutter, Print Finishing Line (WA), a BQ 280 PUR binder and Fineline (Vic) a Horizon Stitchliner 5500.

    Businesses for sale

    Ascent Partners has seven print related businesses on the market, with new listings in WA and VIC. The level of enquiry is mounting specifically for client lists that can be rolled into other sites as well as businesses being sold as going concerns.

    Click here for more information.

  • Richard Rasmussen’s Market Watch – June 2013

    Richard Rasmussen (pictured), director  of Ascent Partners, wraps up the final month of the 2013 financial year, as the local printing industry farewells one of its most tumultuous years and welcomes the coming of FY14.

    Financial year 2013 will perhaps be remembered as the industry’s most tumultuous in terms of the volumes of consolidation and closures.

    The year ended with the announcement that two of Japan’s largest press manufacturers, Ryobi and Mitsubishi, were to merge on 1 January 2014.

    Other supplier news included EFI acquiring another company, this time Gam Systems Software in Belgium. Paperlinx Denmark acquired Cadorit, a Swedish Digital provider.

    Locally in NSW, 120 jobs went as a result of the PMP Chullora NSW directory plant closure. Southern Colour (NSW) changed shareholding and name to Oxygen and Peachy Print moved into and Megacolour’s building. Pro Pac Packaging was active on the acquisition front, purchasing Eco Food Pack Aust, Australian Flexographic Printers and Poly Products Co.

    Also in NSW, we saw Print Master NSW go into liquidation and Active Print Wagga Wagga, purchase a Signarama franchise.

    In Victoria we saw perhaps Melbourne’s longest standing printer, William Troedel & Co. (Charles Troedel formed Melbourne’s first lithographic printer in 1860), along with Troedel – Docucopy, a company they formed when they merged with Docucopy 12 months ago, both go into liquidation.

    On a brighter note, Digital Print HQ opened their new business and Signarama opened a store in Geelong. Excel also announced they purchased a Thai software developer, Devsenses.

    In Queensland, creditor’s meetings for voluntary creditor’s liquidations were planned for Impulse Printing and Graphic Litho.

    Machinery – Sales and Installations

    Further machinery sales and installations followed on from last month’s PacPrint exhibition, and numerous sales were obviously made of used equipment from the Geon auctions (unfortunately they are not all listed here).

    Aust – EFI announced it was to install the browser based Printsmith MIS system to around 100 Kwik Kopy franchises.

    NT – News Limited installed a new Ferag Inserting line.

    QLD – Lotsa Printing purchased a HP FB 500 UV flatbed.

    NSW – Megacolour installed a new Heidelberg CD 102 -6, SOS purchased two HP Indigo 7500s from the Geon auction, and Doggets announced their NSW and VIC branch would each install a Marquip Ward United TSKM 1650 sheeter.

    VIC – Quite a lot of digital equipment was sold and / or installed – Vital Signs (Roland DG Solijet Pro 4 XR-640), new start Digital HQ (Xerox D110, and J75 and Epson Surecolor SCT 7000), Grace Engineering (Oce Arizona 480 XT UV Flatbed), Landells Signs (via Spicers, two x Vutek GS 3250 LX Pro), Bull DSP ( via DES a Vutek GS 2000 LX), ADS Australia (Roland DG XF 640 printer and GX 640 Cutter), Label House purchased the HP Indigo WS 6600 and a Smag Galaxie Digital converter and finally Press Print Digital purchased a Rigo Lamibind 420 PUR perfect binder.

    SA – Screen sold a Flexo PlateRite FX 8700 II CtP to Signature Labels

    WA – Evoke Media purchased a Fujifilm Acuity LED 1600, and Scott Printing purchased a used HP Indigo 5000 digital press.

    Ascent Partners Market Watch provides a summary and web links for most of these stories on their web site, www.ascentpartners.com.au. Here you will also find a list of six print related businesses it is currently marketing for sale.

  • Richard Rasmussen’s Market Watch – May 2013

    Richard Rasmussen (pictured), director of Ascent Partners, looks at all the local market’s activities over the last month and discovers that Melbourne’s PacPrint trade show has resulted in more new machinery sales than any other sort of market movement within the industry for the month – a Market Watch first.

    Market Watch – May 13.

    For the first time since writing this report (July 2011) we have far more new machinery sales and installations than market movements (business sales, acquisitions, mergers and closures).

    Albeit most of these new equipment sales came from PacPrint, the list below is indeed impressive and shows a degree of confidence in the future – you don’t invest in new capital equipment unless you believe those investments will make a return.

    Major Equipment Sales and Installations 

    Digital:

    • HP Indigo – 10 machines sold of which may have included Bambra Press’s HP 10000.  They also installed an Indigo 5500 at LEP (QLD).
    • Scodex – Sale of a digital press to King Island Press (NZ).
    • Xerox – Sales to Minuteman Mount Waverly (Vic) of a Colour 8000 and Spot Productions (QLD), a Colour 1000.
    • Konica Minolta – Sales to Ulladulla Printing (NSW) of a C7000, Newprint HRG (QLD) of a C70HC, and Kwik Kopy Liverpool (NSW) of a C6000 PRO.
    • Ricoh – An installation to CMYK Signs and Digital Print (NZ) of a C651 EX.
    • Kodak – A sale to Tennyson Printing (QLD) of a Nexpress.
    • Gallus – 1st installation at Appliance Testing Supplies of a Heidelberg Linoprint L digital press.

    Offset

    • Ryobi – A sale to CMYK Hub (NSW) of an 8 colour 925, and an unnamed printer purchased the A3 five colour press from the stand.
    • Komori –A sale to Rawson / Artvue (NSW)  of a L529 HUV press.
    • KBA – A sale to Centrum Print (NSW) of a 162 press.

    Other Print

    • Fuji Xerox – An installation to Pegasus NSW of a Docuwide C842.
    • Agfa – An installation to Sony DADC (NSW) of a Jeti 3020 Titan UV Inkjet flatbed, and an Anapurna M2050 UV inkjet press.
    • Fuji Film – An installation to Rocket (NZ) of an Actuity Advance Select Flatbed and a Uvistar. to Image Centre Group (NZ), and a sale of a Actuity LED 1600 to Direct Image Digital Printing (WA).
    • DGS – a sale of a Mimaki 3.2 metre dye sub ATP to Vivad (VIC).
    • Durst – a sale of P10 1250 flatbed printer to Visual Printing and Signage.
    • HP – Installation of a Scitex FB 7600 Press to Colorcorp (QLD).
    • Mark Andy – sale to an unnamed printer of a performance Series P7 label press.
    • Memjet – sale of a label module to Aldine Printers (QLD).
    • Swiss – Installation of a Q Print Impala flatbed to LF Media (WA) and a Q Print Oryx Flatbed to Abbey Group (NSW).
    • VUTek – A sale of a GS 2325 LX Pro sale to Vivad (VIC).

    Laminators

    • D&K – A sale to Spot On (QLD) of a Europa .
    • Autobond – sale of a Mini 76 TH to Acorn (NSW) and to Typeface  a Micro 52.
    • Ecosystem – a sale to Who Printing (NSW) of a celloglazer.

    CtP / Processors

    • Kodak – A sale to CMYK Hub (VIC) of a Magnus 800.
    • Screen – a sale to an unnamed printer of a Platewrite FX 870 MK II Flexo.
    • Elanatix – a sale of a 125 SX thermal plate processor to Mercedes Waratah (VIC).

    Other

    • Cutters – A Zund G3 to Media Point (VIC), Clarke Murphy (NSW) an Esko Kongsberg XP.
    • Pile Turner – A sale of a Busch SW 125 RLA to CMYK Hub (VIC).
    • Collators – a sale of a 3 tower Horizon to BHP Print (NSW).
    • Perfect binders – Southern Colour picked up the Geon Muller Acora A7, and an unnamed printer a Rigo Lamibind 420 PUR.
    • Hole Punch – Rilecart sold 10 Ultramacs off the Pacprint stand.
    • Folder – A Stahl installation of a TH 56 to Pressprint (NZ).
    • Finishing Systems – Sale of a Thermotype ZIP TLS 2 trim score and perf sale to Daroji Digital Finishing (QLD), and an installation of a Watkiss digital finishing system to Fotobase (SA).

    Apologies to those not listed here, the above were “as reported”.  Hopefully the month of June will see more PacPrint sales identified. Feed to stories to Print 21 and we’ll report them.

    Market Movements

    Printer movements:

    • Rawson Graphics and Artvue (NSW) merged.
    • Halley Labels takes a major share of AC Labels (NSW).
    • Large Format Media (WA) opens new trade only business.
    • BPA sells to Newtone Press.
    • Big Print Typo (VIC) sells to OCA Group.

    Supplier Movements:

    • Management buyout of Luscher Group.
    • Graffica sells to DES.
    • LCS sells to Blue Print Imaging.

    Market Watch

    You can subscribe to Ascent Partners Market watch for free at www.ascentpartners.com.au, where you’ll find the links to the above stories.

    Ascent Partners also has six businesses on the market and demand for more. See our website for details.

  • Richard Rasmussen’s Market Watch – April 2013

    Richard Rasmussen, director of Ascent Partners, looks at all the local market’s activities over the last month from mergers and acquisitions to closures, major equipment sales and installations in April 2013.

    Victoria saw the closure of Vega Press (VIC), and the purchase of their client base by Print Media Group, the sale of Four Trade only to Lamson Paragon and BPA being bought out of receivership by NSW Group, Print Warehouse.

    Print Warehouse was also active in purchasing Dynamic Print Communications on the Gold Coast.  In QLD Monoset Printing appointed a receiver.

    In the ACT the Blue Star Hume site was announced to be closed by the end of April.

    NSW saw the liquidation of Park Printing and Spectrum Printing.

    SA’s Precision Cutting Formes had a creditor’s meeting for voluntary creditor’s liquidation and Birmingham Street Printers had a notice inviting debt claims issued by BDO.

    On a brighter note in NZ, Dpod’s sale to Image Centre was reported to have resulted in a rise in sales to NZ $50 million. Whilst in Christchurch, APN’s Christchurch Star and Omara Mail were sold to Mainland Media.

    From the Supplier side, Currie Group purchased Universal Print Partners, Luscher went into bankruptcy, and DES opened a new office in WA.

    Major Installations and Sales

    Manroland was successful in securing numerous web related orders for the imminent relocation of Fairfax’s plants in Victoria and NSW.

    Auckland’s Benefitz purchased a Dianippon Screen B2 Inket press, the Truepress Jet SX.

    In NSW, Heidelberg reported three sales of the new Linoprint digital presses to three unnamed printers. And Dragon Print installed a Screen Platewrite FX 87011 XL Flexo CtP.

    Victoria’s Kosdown Printing installed a MGI Meteor DP 8700XL Digital Press.

    Market Watch

    To view Market Watch and download the PDF on this month’s and previous month’s activity, please visit our web site, www.ascentpartners.com.au Here you can also subscribe to the bulletin free of charge – we issue on the first of each month, with a link to each activity’s story.

    Businesses on the Market

    Ascent Partners has two new listings – A Print management business and a $3,000,000 commercial printer. Five other print related business are also listed on the web site, www.ascentpartners.com.au

    Ascent Partners – Preferred Business Sales Agent and Business Appraisal Specialists for the PIAA.

    We’re pleased to announce that we’ve been appointed as the preferred Business Sales Agent and Business Appraisal Specialist for the Printing Industries Association of Australia (PIAA). More details to be outlined to PIAA members shortly leading up to, and post PacPrint 2013.

  • Richard Rasmussen’s Market Watch – March 2013

    Ascent Partners’ Richard Rasmussen, wraps up the tumultuous month of March in the local printing industry, with an overview of all the reported industry happenings including mergers, acquisitions and closures, as well as the latest major equipment installations and sales.

    I said last month, that if there was a bigger news month in the industry, I’d like to know about (and no one rang). Well this month almost surpassed it.

    The news is obviously headed by Geon. Following the February “receivership” announcement, in March it was announced:

    • Geon Bankstown (NSW) – sold to Bluestar
    • Geon (Mount Waverley) – sold to Bluestar
    • Geon NZ – sold to Bluestar NZ
    • Geon Labels (NZ) – sold to Bluestar NZ
    • Geon WA – Management Buyout
    • Geon TAS – Sold to Todisco family
    • Geon ACT – sold to Opus
    • (Geon QLD – was closed completely in Feb)

    There was also an update on the Vega Press receivership – they are estimated to owe around  $6.7 million, and with CPS, their administration left an estimated shortfall of $2.5 million.

    Another large Melbourne Printer, BPA, also fell into the hands of the receivers in March.

    What may have slid under the radar screen was the liquidation of End Print Solutions (NSW), Australian Print Solutions (VIC), Print Media and Publishing Group (NSW) and Kwik Kopy South Melbourne (VIC).

    During the month we also saw Snap Perth announced as the purchasers of Snap Kalgoorlie.

    On the supplier side:

    • The PIA and GASAA (GASA) tied the knot and formally merged.
    • Roland DG opened a new manufacturing facility in Thailand
    • Canon started to build its new Sydney Headquarters
    • Kodak moved closer to its Chapter 11 exit.

    Major Equipment Sales and Installs:

    Two of the major Digital players made some installation announcements:

    • HP – Pemara (VIC) installed a new Indigo WS 6600 and Courtney Colour installed the region’s first B2 Indigo 10,000.
    • Xerox – Sold an I Gen 4 EXP to Lotsa Printing (QLD) and installed an I Gen 4 at Kingswood Press (QLD).

    Ricoh also announced the sale of a Ricoh Pro C901 to Industrial Printing Company (NSW).

    PMP has also installed a in their WA Print and Distribution centre, a Ferag  / In –Log mailroom system.

    Roland DG rounded out the equipment stories with a Solijet 4 XR – 640 installation at DPod in Wellington.

    Market Watch / Businesses for Sale.

    For more details on these and other stories, please visit the Market Watch page on our website, www.ascentpartners.com.au. Here you can subscribe to the bulletin or download a PDF.

    On this site you will also find seven print related businesses we have on the market.  We have plenty of enquiries coming in for specific Australian businesses wanted, so please contact us if you are looking to sell or wanting your business appraised.

     

  • Richard Rasmussen’s Market Watch – February 2013

    Ascent Partners’ Richard Rasmussen wraps up what was perhaps one of the most tumultuous months on record for the local printing industry

    If we’ve seen another month like last month, I’d like to hear about it.

    Obviously, the month was headlined by GEON initially announcing a change of ownership, and then later going into receivership. All is still not clear, with new owners wanting to trade on in a yet to be disclosed different business makeup, and suppliers wanting to be paid out for previous debts and cutting supply. No doubt March will provide more clarity as to whether GEON survives or emerges in a different format.

    Around the corner in Melbourne, Vega Press also entered receivership. Founded in 1960, they are one of Melbourne’s largest, high quality A1 / A2 commercial printers.

    In Port Melbourne, one of Melbourne’s largest print management groups, Complete Print Solutions (CPS) and Fox Print, were purchased by OfficeMax. Later in the month CPS entered administration.

    Amcor had one plant closure, a paperboard mill in QLD, and one opening, a recycled paper mill in NSW.

    A magazine publisher, Australian Media Group, entered liquidation, and finally QLD printer, Cynergy Printing entered administration.

    Suppliers

    Locally long-standing supplier, Plunkett and Johnson, went into voluntary administration and BJ Ball purchased Graph-Pak. Also, Kissel and Wolf completed its acquisition of Sefar Printing division and started trading as Kiwo Australia in Jan 13.

    Globally, Xerox purchased ink jet maker, Impika, and Plockmatic purchased bindery manufacturer, Morgana.

    Major machinery sales and installations

    Perhaps the biggest news in this sector was CMYKhub’s (VIC) announcement that they had purchased a new Komori 8 colour G 40 H-UV press.

    Panprint (NZ) installed a Rotocontrol slitter / rewinder and Digital Press (NSW), installed a Chameleon workflow W2 P system.

    Businesses on the market

    Ascent Partners has a new business on the market – a highly profitable A2 / A3 / digital printer, turning over $5 million plus and are soon to list a very successful print management company. Other businesses in VIC, QLD and NSW are also listed on our web site.

    Market Watch

    More details on the above stories can be found here on our web site: www.ascentpartners.com.au, where you can download this edition and previous editions or subscribe to our Market Watch bulletin.

  • January wrap-up – Richard Rasmussen’s Market Watch

    Ascent Partners’ Richard Rasmussen (pictured) wraps up all the local market movements that hit the Australian printing industry in January 2013.

    Whilst many of you were taking some time off during the new-year break, the industry continued down the consolidation path:

    • Geoff Selig announced that he would roll up Webstar and Caxton Web into one premise
    • A division of PMP, Pacific Micromedia was sold to Experian, as part of their strategy to divest non-core business units. The market appeared to like the news with PMP’s share price rising from around 14 cents to 20 cents, and later down to 18 cents. That’s a significant change in percentage terms.
    • Two major auctions were announced – today the Goprint auction in QLD (former Govt. Printer) and next week the Hyde Park Press auction in SA.
    • A winding up application was made for Printability in Vic by the ATO, and Kwik Kopy Bondi Junction was liquidated and run in the interim by Kwik Kopy Australia.
    • On the merger front Dynamic Direct and I Group joined forces in Vic.

    Suppliers

    On the global side, Vida Paper filed for bankruptcy only to later announce that it had sold off a mill to three Norwegian investors.

    In the print machinery sector some major announcements were made:

    • Xeikon announced it was in talks with a mystery bidder
    • Ryobi and Mitsubishi announced they had formally entered merger discussions
    • Manroland decided to close down its Plauen plant.

    These are all significant machinery suppliers – four of the top 10-15?

    Locally, Angus Scott’s Ace Rollers and Rollmakers was sold to Rotation Dynamics Corp.

    Machinery

    Compared to the above news, the reported machinery sales and installations were fairly quiet, with Service Printers (Wellington), having installed a Heidelberg XL 75 five colour plus coater.

    All these stories are covered in more detail in Ascent Partners Market Watch bulletin, which can be downloaded from www.ascentpartners.com.au.

    Businesses for Sale

    We have a couple of new listings – a regional, 2.3 million turnover coastal printer in Qld, and a highly profitable A2 / A3 / Digital / W2P printer with $ 5million turnover. See web site for details on these businesses along with five other print related businesses.

  • How to deal with the printer’s ‘fiscal cliff’ – Richard Rasmussen’s Market Watch

    Ascent Partners’ Richard Rasmussen investigates what local print businesses should do if they find themselves subject to the so-called printer’s ‘fiscal cliff’ of financial difficulty.

    25 per cent of Australian Printers are on – or will be on – the Financial Cliff in 2013. 

    We’ve all read about the US economy and the financial cliff they temporarily averted at the start of this year. The next step is the likelihood they will raise the debt ceiling, which hit US$16.4 trillion at the end of 2012.

    I wonder how many Australian printers have hit their debt ceiling (albeit hopefully a few zeros less that the US economy), and are contemplating raising their debt ceiling to pay the bills?

    My estimate is that 25 per cent of Australian printer’s businesses are on their own financial cliff – i.e. they are either in deep financial difficulty now or will be sometime in 2013.

    Whilst many may find this statement alarmist, I live in the real world; I see printer’s P & L statements on a week-to-week basis and work close to the core of these issues. Here are my supporting arguments:

    1.     Market Watch

    As many of you know I have been publishing Market Watch on a monthly basis since July 2011. This email bulletin details the market movements in our industry. It includes liquidations, auctions, closures, plant consolidations.  I counted 30 closures (forced or otherwise) in 2012 and 36 acquisitions. So there are 66 fewer printers in the market. Now, not all sales are caused because printers are on the financial cliff, but let’s say about half are. So you have around 50 that have fallen over due to financial difficulties during 2012.

    Try as I might to record all the data in Market Watch I think realistically I only capture about 25 per cent of the closures and purchases. This is mainly because I rely predominantly on the industry’s trade journals to report them. They do a good job, but miss out on many of the smaller, less public closures and sales. So that brings that number of closures and business sales due to financial difficulties, by my reckoning, to around 200. Depending on who you ask, there were about 2,000 printers in the Australian market, so that’s about 10 per cent who are no longer there due to financial stress.

    Add to that the number that who are trading under severe financial pressure, which let’s define as not being able to make a year-end profit, and/or have consistent major cash flow issues, and/or they have negative equity in their business, of another 15 per cent and you arrive at about my 25 per cent figure of those that have either closed, been bought out (due to financial pressure) or experienced severe financial pressure over 2012:

    Starting number of printers 1.1.12

    2,000

     
    New entrants (an educated guesstimate)

    50

     
    Business Closures (due to financial distress)

    -120

    (6% of starting number)
    Business Sales (due to financial distress)

    -80

    (4% of starting number)
    Business Sales (not financial stress related)

    -80

     
    Sum remaining

    1,770

     
    Of sum remaining those that experienced financial stress in 2012

    -300

    (15% of starting number)
    Not under financial stress during 2013

    1,470

     
     

     

     
    Total experiencing financial stress during 2012

    500

    (25% of starting number)

    Will the trend continue in 2103?

    Has the worst passed? I fear not, for a variety of reasons:

    1. The ATO is coming down hard on business – The amount of winding up notices in January for all businesses is substantial. Clearly there are many who are outside ATO payment terms.
    2. Banks are not lending the way they used to and are more prone to take a harder line of financially stressed businesses
    3. Different business models (web to print, print management, overseas, and digital for example) are continually eroding commercial printer’s market share.
    4. Ditto for different media – i.e. the web, email, social media, outdoor.
    5. The general economy
    6. Lack of competitiveness for many of those with obsolete machinery and systems
    7. The fact that many under financial stress and have been for a long period of time – sooner or later something has to give.
    8. Debtor days are being stretched

    So a conservative view is that another 25 per cent or 443 of the remaining printers will either go or be under severe financial pressure during 2013:

    Starting number of printers – 1.1.13

    1,770

     
    New entrants

    50

     
    Business Closures (due to financial distress)

    -106

    (6% of starting number)
    Business Sales (due to financial distress)

    -71

    (4% of starting number)
    Business Sales (not financial stress related)

    -71

     
    Sum remaining

    1,572

     
    Of sum remaining those that will experience financial stress during 2013

    266

    (15% of starting number)
    Not under financial stress during 2013

    1,306

     
         
    Total under financial stress during 2013

    443

    (25% of starting number)

    Now, I’m well aware that many will have different views. I readily concede there are a lot of assumptions in my data but think, based on what I record in Market Watch (to my knowledge the only record of closures in the industry), what I see as a business sales agent and consultant and the trends in the industry, and in the networks I have access to and work within, my estimates seem reasonable – 25 per cent are on the financial cliff.

    Consolidation, closure or turnaround for the 25 per cent on the Financial Cliff?

    I’d like to see fewer closures and more consolidation (business sales, mergers, affiliations). Closures are generally ugly for all concerned – creditors, families, employees, customers and the whole industry.

    Consolidations are far less so. Sales and acquisitions, mergers, and affiliations are far more appealing – they generally provide for greater value for the client base and possibly some machinery, a better outcome for the business owner, who often needs to be gainfully employed post closure, and a better outcome for employees, some of which will likely picked up by the consolidator.

    Once a firm enters administration, the goodwill (client base) value plummets. I don’t mean by 5 per cent or 10 per cent, I’m talking 75 per cent or 100 per cent of the value pre-administration.

    The reason for this loss of value is twofold – firstly, as every day goes by, clients walk, and the staff managing those clients walk. The perception of a purchaser’s ability to retain clients is severely diminished. Secondly in my experience the administrator’s focus is not on protecting client value.  It’s about analysis of the financials and quickly ascertaining if the business can be made viable.  The hard work required to quickly analyse the value of the client base, prepare a sales document, market it and sell it, is more than often neglected by administrators.

    So if you want to see value for your client base and perhaps some machinery, perhaps a better outcome for your employees is to consolidate your business with others or sell. Sell the client base/business before administration, and set yourself up to have a job with the purchasing/consolidating firm. This does not mean having to reduce the creditor’s return or running afoul of the law.

    The reason I think more don’t go down the consolidation path is they simply don’t know what their options are, don’t know how to go about it don’t know who to ask. They also probably don’t know what people should pay, the legal ramifications, what terms the deal should be done under or who is the best party to go to.

    Of course there are other major options to closure, and consolidation for those on the financial cliff is “turnaround”. As the name implies, “turnaround” involves changing the business into a business that is sustainable and profitable.   There are plenty of lessons to be learnt from those profitable businesses in the market, and many things to change to turn things around. Unfortunately, in my experience most do not chose this path, nor do they implement realistic strategies to make a turnaround come to fruition, or engage outsiders to help. Part of this I think is due to the age of the proprietor and their preparedness to make the investment in time and perhaps money to make it happen.

    If you’re in the ‘financial cliff’ 25 per cent category, here’s what you should do: 

    1.     Be objective and realistic and seek advice.  

    First thing to ask is could this be you in the 25 per cent category – are or expect to make a loss, and/or have consistent major cash flow issues, and/or have negative equity in the business? If you think we’re all doing it tough, you’re dead wrong. Some are doing it very well, and most will survive 2013 without these issues.

    What makes you think you are in the 75 per cent and not the 25 per cent? And if you don’t which one, then chances are, you’re in the ‘25 per cent financial cliff’ category.

    If you know you are in this 25 per cent category, or may enter this category in 2013, ask yourself, what am I doing to change and turn the business around?

    And if you decide to change – ask yourself what is the realistic chance of this happening? Has it ever happened before? Here’s where most will need objective eyes to review the business and its plans for 2013 – These independent eyes will provide a reality check.

    It is often very hard for business owners to be totally objective and realistic in the analysis of their business. So, in all likelihood you will need to seek advice and assistance. There are people that can help with specific industry knowledge, including Ascent Partners, in all states.

    2.     Be aware that all is not lost – know your options.

    There are alternatives to most financial cliff situations. But as stated before, you will likely need to engage someone to help you analyse your situation and provide options, and in some instances help you with implementing those options. Look and ask around for the best person/people to help you and your business.

    In all likelihood those people will include your accountant, but please understand they deal largely with historical data, and are not experts in turnaround work, nor are they best placed to know or advise all the consolidation and closure options that are available in our industry such as ours.

    After the analysis you may not like where you are at, but at least you’ll know, and be able to start to work on a turnaround or consolidation or closure plan.

    All is certainly not lost – there are opportunities to make the best of whatever situation you find yourself in.

    The problem I find is that generally most generate limited options. This is largely because they don’t know what they don’t know. It doesn’t have to be a business closure, or an amalgamation or sale. There could be a whole range of options available to turn the business around.

    3.     Understand the real value lies in your client base.

    What are in demand right now are your clients. The vast majority of printers want more turnover.  What’s not of as much value within your business is your machinery. Of course there are some businesses that will sell ‘as is,’ as a going concern, but most purchasers want the sales and perhaps one or two pieces of equipment. That’s because most buyers are in the trade, and have their own underutilised equipment.

    So, purchasers and consolidators generally want clients, and they want the means to hold onto those clients.

    Anything you can do to provide that surety of client retention is highly valued, and more often than not that includes you as the vendor and client facing staff.

    4.     What’s the value of your clients?

    Don’t be concerned that your clients are worth nothing. They are, even if the business is in financial difficulties. Client values value widely. Appraisers need to consider many facets of the business including:

    • Type of business
    • Size of business
    • Client spread
    • Type of clients
    • Growth prospects of client
    • Profitability of clients – note a no profit business does not mean those clients will not produce a profit for the purchaser!!
    • Location of clients
    • Factors around client retention – i.e. Owner / employees coming across
    • If the business is in administration

    Putting your business into administration dramatically reduces the value of your clients – If you get to the stage of putting your firm into administration, you’ve lost your ability to get a fair value for you clients, much of your ability to be employed, and the opportunity to find homes for selected staff and machinery.

    5.     Do something!

    As a famous Australian Rule football coach Allan Jeans once said to his players – “Don’t think, do – do something.” What he’s really saying is that it’s fine to think something, but at the end of the day, you have to do something.

    For those on or near the brink of the Financial Cliff, thinking and doing nothing should not be an option.

    Summary

    Being in the 25 per cent of printers that I estimate are on the financial cliff is not a certain route to closure.  There are plenty of alternatives to consider. But consider and know of them, you must.

    If you haven’t been able to change the business around in the past, ask yourself, what’s going to change this year? Please get a reality check on your plans.

    Seek independent advice. Don’t try and do it all yourself. Knowing the breadth of options available to you is the key to being able to choose the best path to enable you to get the best return and provide the best opportunity for you and perhaps your employees in the future.

    Richard Rasmussen is the principal of Ascent Partners, a business focused on providing business sales and consultancy services to the Australian Printing Industry. Market Watch is a free monthly email bulletin – subscribe at www.ascentpartners.com.au 

  • Market Watch – September 2012

    Ascent Partners’ Richard Rasmussen looks at all the major mergers, acquisitions, administrations, installations and sales in the local printing industry for the month of September.

    The administrations continued in the month of September, with the largest being Tasmanian forestry group Gunns, who went into voluntary administration after the banks pulled their funding. That puts around 600 jobs at risk, and raises a big question mark against its (AU)$2 billion Bell Bay pulp mill investment. In FY 2012 Gunns made a $904 million loss.

    Other administrations included Printworld International, a print management firm in NSW, Printmode, an A2 commercial printer in Melbourne, and Kea Print (NSW) who went into liquidation. Allprint & Packaging in QLD is due to have a creditor’s meeting for voluntary creditor’s liquidations early in October.

    CBD Printing in Sydney fell into voluntary administration earlier in the month, with a later announcement stating that the four Snap centres under the group had been purchased by former chief executive, Richard Cook.

    On the acquisition front, the major news was that a German media company, Bauer Media Group, purchased ACP Magazines for around $500 million.

    A merger was announced between Melbourne digital printer, Docucopy, and long standing commercial offset Printer, Troedel. This merger will create a $6 million turnover business.

    Fairfax also announced during the month that they were planning to build a new press hall in their North Richmond premises.

    Major equipment sales and installs

    Perhaps the biggest news of the month was Southern Colour’s (Vic) purchase of two Heidelberg XL 106 presses, a ten-colour perfector and six colour and coater to replace two four year old XL presses.

    Also on the offset side came the announcement of a KBA 105 six colour press installed at Labelcraft in NSW.

    After a fire swept through it in February, Special Binding Service in QLD, made perhaps the largest bindery investment for many  years, announcing it had purchased:

    • Two Kolbus perfect binders
    • Two MBO folders
    • An Meccanotecnica Aster Sewing machine
    • Two guillotines with joggers and unloaders
    • And other ancillary bindery equipment.

    Gallus had success with installations of its ECS 340 Label Press at Dragon Print (NSW) and Impact Labels (QLD).

    Other sales / installations included:

    • Fineline Printing (Vic) installed a Kodak Nexpress
    • Prologica (Vic) installed an Oce Arizona double bed 550 XT
    • Central Imaging Technolgies (QLD) installed an Agfa Anapura M2540 digital flat bed
    • Discus (WA) installed the Jeti 3020 wide format press.

    Businesses on the market

    We have six print related businesses on the market in VIC, NSW and QLD covering a wide cross section of the industry – details can be found on our web site, www.ascentpartners.com.au.

    Market Watch

    For further information on past month’s stories, see our Market Watch web page, http://www.ascentpartners.com.au/market-watch.php, or subscribe (FOC) to our monthly bulletin.

  • Market Watch – July / August 2012.

    If you thought there was an end in sight to the ongoing industry consolidation, think again, as Ascent Partners’ Richard Rasmussen highlights the industry’s biggest consolidations.

    Blue Star, having fielded offers on their business, decided to engage Goldman Sachs to sell its business. That was announced on 24 August, so we all wait on next developments.  One component is already in the process of being sold, Rapid Labels (NZ) to the Tiri Group.

    PMP also announced it cut TMA from the process of conducting further due diligence on its business because of lack of proof of its financial wherewithal.  TMA later announced they were going to open a factory in the Philippines and then PMP announced a 25% cut to their web press fleet. Whether these two later events are related to first is unknown.

    Acquisitions

    There were plenty of announcements in the first two months of FY 13:

    • Amcor buys Wayne Richardson Sales
    • Lorimer (VIC) buys Gumming and Varnishing Sales
    • CCL Labels buys Graphitype Printing Services’ pharma business (NSW) for $7 million
    • Champ purchases Eye for $120 million plus
    • Paperlinx buys Canterbury Packaging (NZ)
    • Brand Print Australia buys Visibility Event Signage
    • Prographica buys McDowell Creative (NSW)
    • Fuji Film buys Salmat’s BPO division for $375 million

    Management Buys Outs (MBO) and Mergers

    There were three MBOs reported – Zip Print (NT), Fineline Printing (VIC) and Doran Printing (VIC), one co – location proposal (McPersons into Vega), and one proposed merger (Good Impressions with Sydney Allen).

    Closures / Creditor’s meetings:

    These included Elephant Print Media VIC (Wound up), Mr Copy NSW (creditor’s meeting), Printergy VIC (Voluntary Administration).

    We also saw Goprint (QLD) announce they intended to close and the training facility / program at RMIT (VIC) was taken over by an independent, CLB Training and Development.

    Suppliers

    Here we saw Mathias Bauerle go into administration and a bid by AIP (owners of Mark Andy) to buy Presstek. Weddenrnburn (NZ) announced it would move to larger premises in Mt Wellington, and Anitech is to close its ACT premises.

    Sales and Installation of Equipment.

    There was a substantial volume of major plant sold and installed in the first two months of FY13:

    Offset Presses

    Heidelberg announced it had sold 18 Speedmasters in the last six months, locations undisclosed. KBA advised they have sold large format presses to Labelcraft (VIC) and PMS Lithography (VIC). Komori installed a press at Centurion Print (NZ).

    Digital

    • Xerox – 800 & 1000 presses installed at  Superprint (NZ), an IGen 4 to Complete Colour (VIC) and another 800 to Meteor Design and Print (NZ)
    • HP – Magnify Media (VIC), a Scitex FB 7600, Discus Digital (WA) an Indigo 7600, and Centurion (NZ) an Indigo 5600
    • Canon / Oce – A1 Instant Printing, a Canon ImagePress C7010VP, and Aust Post (2 x Colourstream 3700).
    • Ricoh, a ProC651 printer was installed at Icon Print (NZ)
    • Lanier, a PROC751 Ex digital printer was installed at Siris Printing (NZ).

    Bindery / Finishing

    • Kolbus – Special Equipment (QLD) ordered two Kolbus Perfect Binders and Hannanprint a third.
    • Special Equipment also ordered 3 new folders, and a sewing machine.
    •  Polar – KW Doggetts purchased a 137N and a 115N
    • Sitma – Future Sources (NSW) purchased a 950 E plastic wrapper
    • Ferag – An Easysert Inserter was sold to Future Sources

    There were other sales and installations reported –see our web site, www.ascentpartners.com.au.

    Businesses on the Market

    Ascent Partners have some good size commercial printers on the books along the Southern and Eastern Seaboard. Also we have a couple of smaller ones in Vic and some hopefully about to come on the books around the country. See our web site for further details, where you can also register your interest.

    Next month we resume the first Tuesday of the month’s summary of Market Watch. You can receive the email edition of our monthly bulletin free by subscribing on our web site. This also carries the links to stories as reported in the trade press.

  • Market Watch FY 2012 – A Year in Review Pt. 5

    Part 5 –Major Equipment sales and installations   

    In this the final part of Ascent Partners Market Watch – FY 12, a year in Review, Richard Rasmussen lists all the reported major machinery sales and installations.

    If ever you wanted proof of the rapid change in our industry, look no further than this list.

    Despite what the doomsayers in our industry spruik, there has been some significant investment in new equipment. What has changed however is the profile of the equipment that has gone into our market – it shows the rise and rise of digital equipment installations – wide format, midsized and high end. With those digital installations comes the corresponding large volume of ancillary bindery equipment. We also see the fairly sparse investment in traditional offset equipment.  High speed inkjet machines are entering the market and there has also been a fair share of CtP devices that have been installed.

    Unfortunately, once again this is not to be seen as a definitive list, as its source is mainly from what has been reported in the trade press. Clearly far greater volumes were sold and installed. The lack of sales and installations from a particular vendor could be a function of them, or their customer, not wanting to have the installation reported. In many instances you will note that the vendor is unable to provide the name of the company where the sale / installation occurred, and only provides the numbers of machines that they have been sold / installed. Obviously we would far sooner name names, but respect the customer’s right to privacy.

    You will note that the following list only relates to SME businesses (or assumed SME businesses). The larger businesses were reported in part 1 of this series – click here to view.

    Assta Label House NSW I ABG Digicon label cutter
    Catalyst Graphics NSW I Agfa Jeti 1224
    Core Print VIC I Agfa Avalon N4 CtP
    Discus Digital Print WA I Agfa Jeti 1224 UV digital Flat bed
    Flow Printing VIC I Agfa Avalon N-8 12S CtP
    Flow Printing VIC I Agfa Avalon N-8 12S CtP
    Oxford Printing NSW I Agfa Jeti 1224
    Tennyson Printing QLD I Agfa VCF 85 processor (chem free)
    VRC QLD I Agfa Avalon CtP
    PDQ Labels NSW I Apex 1290 Digital Press
    Platypus Graphics QLD I Autobond 76 Celloglazer with slitter and auto delivery
    ABC Photosigns Vic / NZ S Canon 2 x Image Press C701VP
    KK Chatswood NSW I Canon C7000VP
    3 x Kwik Kopy stores (as advised by Canon) NSW / VIC I Canon 3 x Image Press CV 7000 VP
    AuzPrint QLD I Canon C6000
    PictureWorks VIC I Canon DreamLabo 5000
    Printing.com@Printplus AKL I Canon C7000 VP
    WA Printer WA S Cron Platesetter
    Picton WA S Currie and Co Small folder, creaser and guillotine
    Numerous customers (as advised by vendor) Aust / NZ S Duplo 4 x digital booklet makers
    A Better Way to Print QLD I Duplo DC 645 Card Cutter
    Unknown (as reported by EFI) Aust S EFI Vutek QS 2000
    Scribal Group NSW S EFI Rastek H652
    Hannanprint NSW S Ferag UniDrum 440 Gatherer, stitcher, trimmer
    News Ltd WA / QLD S Ferag 2 x SNT 350 Three Knife Trimming drums
    Sony NSW I Fujifilm Acuity HS 3545 flat bed UV digital printer
    Orangebox AKL I GBR GBR 420T Smart feeder, folder
    Magnify Media VIC I GMC Wide format workflow / colour system
    Hosking Envelopes Aust S Halmes 4 x re-manufactured envelope printers
    Bambra Vic I Heidelberg XL 75-12 colour offset
    AMR Hewitt VIC S Heidelberg Dymatrix 113 diecutter
    CJ King WA S Heidelberg SM 74-8 -P
    JP Printing VIC S Heidelberg SX 52 and SM 52-5
    Snap Perth Hub WA I Heidelberg SM 52-4 Anicolor
    Various (as advised by Heidelberg) Aust NZ S Heidelberg 4 x A1 presses (36 print units in Apr to Dec 11)
    Various (as advised by Heidelberg) Aust NZ S Heidelberg 4 x A2 presses (23 print units in Apr to Dec 11)
    Various (as advised by Heidelberg) Aust NZ S Heidelberg 4 x A3 presses (20 print units in Apr to Dec 11)
    Various (as advised by Heidelberg) Aust NZ S Heidelberg /Kodak CtP – 13 devices (9 HD, 4 Kodak in Apr to Dec 11)
    Eastern Press VIC S Heidelberg XL 75 – 5 +L
    McHargs CHC I Horizon BQ470 PUR+EVA perfect binder
    McHargs Horizon SPF 200A
    Broderick Printing and Design AKL NZ I Horizon Stitchliner
    Crystal Print WA S Horizon Stitching line
    Dieline AKL NZ I Horizon AFC 566 folder, BQ 270 binder, SPF 200A collate, stitch, trim
    Maroondah Printing VIC I Horizon Collate, stitch and trim
    Various (as advised by Curries) S Horizon 3 x AFC 566 FC cross folders
    Various(as advised by Curries) S Horizon 2 x Stitchmasters
    Who Printing NSW I Horizon BQ 470
    Assta Label House NSW I HP Indigo WS4500
    Image Source WA I HP DJ L65500 Latex wide format
    RMIT VIC I HP Designjet Z6200
    Sabre Signs Cch I HP Scitex FB 700 / Designjet L25500
    Bokay Group WA S HP Scitex FB7600 Digital Press
    Briner Total Signage Solutions VIC I HP Scitex LX 800 printer
    Colemans Printing NT I HP 2 x Indigo 5500
    Digi we doo SA S HP Indigo 7500
    Digimen Townsville QLD I HP Scitex FB500 UV Flatbed Printer
    Discus WA I HP Indigo 5000
    Lotsa QLD I HP 26500 Wide Format (Latex)
    Magnify Media WA S HP Scitex FB 7600
    Momento Pro NSW I HP Indigo 7500
    Pilpel Print WA I HP Indigo
    PMG NSW S HP Indigo 7500
    PMI Corp VIC I HP Indigo 7500
    Pressprint AKL NZ I HP Indigo 3550
    Spice Digital Imaging WA I HP Super wide Designjet L28500
    Various (as advised by HP) Aust / NZ S HP 4 Plus 1000 presses
    SEMA NSW /VIC I/S Impika iPrint eVolution press x 2
    GSP NSW I Inca Onset S20 digital flatbed printer
    Retail Communications Vic I Inca Onset S20 high end flat bed
    Aust Customer Aust S KBA 105 – 5 plus coater
    Print Counsel AKL I KBA Genius 52 UV
    Kirk ?? S Kodak Flexcel NX wide flexo
    Kirk Vic I Kodak Flexcel NX wide system
    BDR Max AKL I Konica Minolta Bizhub C7000
    Numberous customers Vic S Konica Minolta Digital Machines
    Pure Colours NSW I Konica Minolta Biz Hub 8000
    Unitec NZ I Konica Minolta and Oce Suppliers of a new range of digital printers
    LabelForce WA I Mark Andy P5 – 8 colour Flexo press
    Marvel Bookbinding VIC I MBO T 800 Perfection folder
    M&N Graphics NSW I MBO T535.4.4.F folder
    Dragon Printing ?? S Memjet Speedstar label printer
    MailEzy QLD I Memjet Envelope printer
    Print Rite NSW S Memjet Speedstar label printer
    Christchurch Digital Print Co-operative CH I Mogana DocuMaster Pro Booklet maker
    ABC Photosigns AKL I Morgana Digifold Pro
    Kwik Kopy Norwood SA I Morgana Documaster and DigiFold Pro
    Lotsa QLD I Morgana DigiFold
    Griffin Press SA I Muller Martini SigmaLine
    Brisbane City Council QLD I Oce Colourwave 600 Wide Format
    Briter VIC I Oce Arizona 360GT Flatbed
    Slimbox NSW I Oce Arizona 360XT Wide Format
    On Demand VIC I Oce Colourstream 3500
    Pageset VIC I Oce Arizona 550 GT and Pro Cut
    St. Lawrence College QLD S Oce Manage print facility
    Trannys NSW I Oce Arizona 550 GT UV
    Various, as advised by Heidelberg Aust / NZ S Polar 30 x Polar orders             (April – Sept 11)
    Excel Digital NZ S Polar 80SE
    Various Aust NZ S Polar 38 machines (Apr – Dec 11)
    Publications Perspective VIC I Presstek 34 DI press (Used)
    Redworks Ogilvy NZ I Ricoh 2 x Pro 651 EX
    Armadale Council WA I Ricoh Pro C900 + finishing
    Kwik Kopy WA I Ricoh C901 and 1357EX
    Snap Northwest NSW I Ricoh Pro C901
    Eye Tonic NSW I Roland VersaUV LEJ-640
    Frontline Printing Syd I Roland DG LEJ 640, UV flatbed
    Imprimerie STP Multipress Tahiti I Roland 700 Hi Print
    Unknown (as reported by Roland DG) Aust S Roland DG 8 x Versa wide format
    Unknown (as reported by Roland DG) Aust S Roland DG LEJ 640 Hybrid UV inkjet
    Kalamazoo AKL I Ryobi 920-10 colour offset
    Kalamazoo CHC NZ I Ryobi 955D and 925D Offset presses
    PMS VIC I Ryobi Ryobi 925
    Catus Imaging NSW I Scitex XP 5300
    Omnigraphics Akl I Scitex XP 2300
    Graphic Glass WA I Screen Trupress Jet 2500UV
    Mega Colour NSW S Screen PlateRite 8900 CtP
    Metro Press  WA I Screen Platewrite 4300E CtP
    Queensland customer (as reported by Screen) QLD S Screen Truepress Jet 520
    Various (as reported by Heidelberg) Aust NZ S Stahl 7 machines sold                (Apr – Dec 11)
    CMYK Hub QLD S Stahl Ti 52 Folder
    Benefitz AKL I Tekcel Wide format router
    Photobook Shop VIC I UniBind Casemaker 750A
    GSP NSW I Uvistar 5032 4 colour grand format UV
    Press Print Solutions Vic I Watkiss DFS booklet machine
    Immij VIC I Xerox 800/1000 press
    Xtreem VIC I Xerox I Gen 4 EXP
    2 x Customers (as reported by Xerox) Aust S Xerox 2 x Nuvera 200 EA Perfectors
    Kalamazoo WEL S Xerox 2 x 2800 Inkjet Colour continuous feed printers
    Print Storm NSW I Xerox 1000 Press
    SEMA NSW S Xerox iPrint 75 x 2
    Snap Mackay QLD I Xerox 800 Press
    Various (as reported by Xerox) Aust S Xerox 60 x 800/1000 Digital image presses sold in region in past 12 months
    Worldwide – Market Street QLD I Xerox 800

    The above list was developed after the collation of data from Ascent Partners monthly Market Watch Bulletin. This bulletin is available on the free subscription basis from their web site, www.ascentpartners.com.au.

    Next week we will issue Market Watch for the first two months of this financial year. We’re sure you won’t be surprised by the continued consolidation and investment in the industry.

  • Market Watch FY 2012 – A Year in Review Pt. 4

    Part 4 – Reported SME Mergers and Acquisitions   

    Ascent Partners director, Richard Rasmussen, outlines some of most prominent mergers and acquisitions that occurred during the 2012 financial year for the small to medium end of the market.

    Much has been said about the poor state of the printing industry, but there is a positive side as well. In FY 2012 there were plenty of mergers, acquisitions and amalgamations, which shows that there is a degree of confidence in the industry – buyers don’t buy unless they see a return on investment or a more positive outlook than pre-acquisition.

    And, it makes senses that this consolidation continues from both the vendors’ and acquirers’ perspectives. For example, we all know that one of the key profitability indicators of print businesses is the asset utilisation rate. Consolidation allows for a dramatic increase in utilisation rates, and with that the opportunity to improve profits.

    We recorded 23 in this small to medium enterprise (SME) sector, about one a fortnight, however we know there far more. For example Ascent Partners made eight sales during the year, and due to privacy requests only five are provided in this listing.

    You will note that the following list only relates to SME businesses (or assumed SME businesses). The larger businesses were reported in part 1 of this series – click here to view.

    The below list was developed after the collation of data from Ascent Partners monthly Market Watch Bulletin. This bulletin is available on the free subscription basis from their web site,  www.ascentpartners.com.au.

    Next week, in the final part of our overview of FY 12, we will provide a list of the major Sales and installations of equipment in the industry.

    AUST / NZ
    APN Outdoor and Quadrant Private Equity Joint Venture
    Billabong Capital Partners buys Moore Australasia’s shell Purchase
    PMA Solutions / Trio Group Merger
    NZ
    Kalamazoo buys K&M Print and Taieri Print Acquisitions
    Blue Print Imaging buys HGV Acquisition
    VIC
    Big Print buys Typographical Services Acquisition
    AFI Branding Solutions buys SLS Group Acquisition
    Minuteman Lonsdale Street buys Colourprint Acquisition
    Brougham Press buys Echo Press Acquisition
    J&J Printing buys Manark Printing Acquisition
    Minuteman Press Abbotsford buys BR Printing Acquisition
    Biz Works buys Miss Print Acquisition
    WorldWide’s South Caulfield and Mt Waverley stores Merger
    Cyan Press buys Contemporary Press Acquisition

    NSW
    Kwik Kopy buys liquidated Cityprint Acquisition
    Ausmage Media buys Locographics Acquisition
    Local trade binder buys Quantum Printing Acquisition
    Local group buy Speciality Press Acquisition
    The Bright Print Group buy Newcastle Camera Print (NCP) Acquisition
    QLD
    Print Approach buys ABC Printing’s client list Acquisition
    SA
    North East Print buys  Copy and Adelaide Image Printing Acquisition
    Worldwide Adelaide Internal buy out
    WA
    Lamb Printing and Vangaurd Press Amalgamation
  • Market Watch FY 2012 – A Year in Review Pt. 3

    Part 3 – Reported SME Receiverships, administrations and liquidations.  

    Ascent Partners director, Richard Rasmussen, outlines the many reported receiverships, administrations and liquidations during the 2012 financial year in the SME (Small Medium Enterprises) sector.

    While I don’t see this collection of industry receiverships, administrations and liquidations as a definitive list, this is simply what I have been able to pick up from the trade press and from my networks and reported in Market Watch. It should also be noted, that these were ‘as reported’, and that the end result may have been a trade sales or amalgamation. However, it is fair to say the vast majority ended as closures.

    It can also be assumed that the number is far greater than this. The methodology in the collection of the data largely relies on what was reported. It does however show many businesses in our industry were unable to continue to trade.  I’m sure they each have their own story to tell.

    I hope that more in the industry choose to report this type of information through to media outlets such Print21, where they will always be kept confidential, and independently verified.

    Note that large enterprise receiverships, administrations and liquidations were reported two weeks, ago, in part one of this series.

    Legend for table:

    VA-Voluntary Administration; A-Administration; R-Receivership; L-Liquidation; WU-Wound Up; NWP-Notice to wind up; CM-Creditor’s meeting.

    NSW
    City Print Ptd Ltd VA
    Good Impressions Offset Printers A
    Printer’s Korner CM
    AP Digital CM
    Form Print L
    GoodCrowd Integrated Print Communications L
    Norman McGriggor Printing L
    Australian Managed Print Services VA
    Print Associates VA
    Printpack Pty Ltd VA
    The Print House Port McQuarie VA
    Impress Colour VA
    Octopus Solutions VA
    VIC
    Worldwide Online Printing Blackburn CM
    Heatprint Aust CM
    Elephant Print Media L
    Fortiori Publishing L
    Embassy Press L
    Minit Print L
    Moorabbin Printing L
    Print Specifix L
    PrintWorld Victoria Pty Ltd L
    Market Printing VA
    Embassy Press A
    Connect print and publishing CM
    QLD
    Unlimited Images L
    ABC Printing L
    JT Press L
    Steve Parish Publishing L
    Peninsula Colour Graphics NWU
    WA
    Supreme Printing R

    This list was developed after the collation of data from Ascent Partners monthly Market Watch Bulletin. This bulletin is available on the free subscription basis from the web site:

    www.ascentpartners.com.au.

    Next week, in part 4 of this series, we will report on the FY 2012 Sales and Acquisitions in the SME sector.

  • Market Watch FY 2012 – A Year in Review Pt. 2

    Part 2 – The Suppliers.

    In the second of a five part series Ascent Partners director, Richard Rasmussen, outlines the major market activity pertaining to consolidations, takeovers, sales, acquisitions and closures that were reported within the supplier sector of the industry in FY 2012.

    Global Suppliers

    Who would have thought at the start of the year manroland, Shinohara and Solna would change hands? Or that Kodak would file for Chapter 11? There was plenty of activity amongst some of major suppliers.

    1. Manroland – In November they filed for insolvency. Langley Holdings subsequently purchased the sheet-fed division and the web division was purchased by Prossehl
    2. Kodak files for Chapter 11 (Jan).
    3. Heidelberg – purchased CSAT
    4. Goss France merged two sites
    5. Hans-Gronhi purchased Shinohara
    6. PaperlinX – In January they received an offer to purchase shares, in February there was a leadership challenge and then in July the challenger, Andrew Price, was appointed to the board.
    7. EFI acquire Alphagraph, Prism and Create Print
    8. Platinum Equity acquire Quark and Quark later acquire Mobile IQ
    9. Wifag buys Solna
    10. Xeikon acquires RSD Technik and Flexolaser
    11. HP Buys Hiflex
    12. Domino takes over Graph-Tech
    13. Forsyth Capital buys Baldwin
    14. Adobe purchases Efficient Frontier
    15. Dahaher buys X-Rite
    16. 3M buys Avery consumer products division
    17. Autobox buys Andrew and Suter
    18. Hahnemuhle’s purchases Zanders
    19. Glide Private Equity purchases Spandex

    Suppliers – Local

    1. DIC buys Pacific Inks of NZ
    2. Jet Technologies (NZ) opens branch in Auckland
    3. Blue Print Imaging buy HGV / NZ
    4. Fluid Technologies (NSW) ceases trading
    5. Supply One ceases trading
    6. CSG (NT) rejects takeover offer
    7. Bermuda (QLD) open new distribution centre
    8. Australian Graphic Supplies opens new NSW site
    9. Starleaton (NSW) relocates

    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 3 of “Market Watch FY 2012 A Year in Review”, we provide an overview of the Small to Medium size business that closed.

  • Market Watch FY 2012 – A Year in Review Pt. 1

    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.

  • Rasmussen’s seventh top tip – Choose advisors carefully

    Selling a business is not something that is done every day. The vast majority of printing business proprietors has never sold a business before. So it’s important to choose advisors carefully, especially in today’s tough environment. Ascent Partners’ principal, Richard Rasmussen, looks at how to do it right.

    The choice of which advisors you include in your transition / business sales team is obviously a vital component in a smooth and successful business sale. In all likelihood you’ll only have one shot at it, so you need to choose wisely.

    As with all professional services (including printing), the cheapest option is not always the best – you need to choose “horses for courses” advisors. The upfront cost is largely irrelevant, it’s the final “in the pocket” and personal outcomes that should be the primary prerequisites.

    Below is a list of advisors you may wish to consider:

    Accountants – The first person you should consider to be on the team is your accountant. However, care needs to be taken to choose which areas they are included in. Taxation planning is usually a “no brainer”, as is the preparation of financial documents to be included in the sales process, and assistance with responses to financial due diligence questions.

    Business appraisals and valuations are probably not their forte, especially if they work for a variety of clients and have no specialist knowledge of the printing industry. I can’t tell you the number of times my clients have been given completely over the top valuation and appraisals of their business. As an example one gave an appraised value of $3,000,000, I appraised it at $1,200,000. It sold for a lot closer to my number. The reason they can be so out largely lies with them having no knowledge of the market value of plant and equipment, and having no prior sale knowledge as to what multiple to apply (a multiple is the number often applied to the profit of a business to establish a selling price).

    Financial Advisors – They can assist in the preparation of your personal financial objectives, and implementation advice before and after the sale. It’s not all about the business sale; it’s also about your own financial situation and what money you need to move onto the next stage of your life.

    Business Consultants – They can help in the planning and strategy in the transition phase. Business consultants with industry knowledge will obviously have a head start on others, as they know the different business models, business requirements and what buyers are looking for. For example if exit planning is done well in advance they should be able to advise you on what you need to do in the lead up to sale. This may include changing business models, retiring obsolete equipment, not hiring replacement staff, and more emphasis on retaining customers. It’s obviously hard to provide that advice if they don’t have industry knowledge.

    Lawyers – Need to be appointed to prepare sales contracts and letters of agreement. They also offer advice in the process to ensure your best interests are protected and served.

    Business Appraisers / Valuers – As discussed throughout previous Six Tips, we believe the first step in the transition process is to have your business professionally appraised. This provides the starting point from which to plan your transition. The appraisal needs to be from a professional with industry experience. An incorrect appraisal (either higher or lower) can obviously impact heavily on the final business sale final price you achieve. It’s important to get it right.

    Equipment Valuers –As the plant and equipment value and the goodwill value make the sum total of the business value, it is important to establish a realistic market value for the plant and equipment prior to marketing the business. This can be done by independent equipment valuers as an aid to building up a justification of asking price for the business. Industry specific brokers and equipment dealers can also offer indicative values, but it is usually the equipment valuers that carry the most weight with the banks.

    Friends, family, colleagues and peers – Obviously you may have friends, family, colleagues and peers that you can assist and provide advice in the transition phase. It’s very important however, when seeking their advice, that you consider their credentials and their ability to realistically add value to the process. However well intentioned and well meaning they are, you should be seeking advice from those with industry and relevant business sales experience.

    Business Sales Agents:

    There are a few common options:

    a.     Self Sell  – You may choose to sell the business yourself, which has the advantage of eliminating business sales fees, but has the disadvantage of reducing the ability to keep the sale private. Other factors to consider are how well equipped you are to sell the business, prepare sales documents (which you provide the prospects), get confidentiality agreements prepared, keep the emotion out of selling the business and whether you have the time to deal with the sales prospect’s enquiries. A poorly prepared sales document and an over the top asking price is likely to turn off vendors who more often than not would prefer to deal with a third party.

    b.     Business sales agents can be a good option as they have experience in business sales. Biased as we may be, we think the best agents are ones that have printing industry business sales experience, have the runs on the board, have good networks and prospects on the books, and have access to relevant advertising media.

    c.     Large accountancy firms – offer the same as business sales agent, perhaps with extended services such as tax advice, accountancy, and business advice. Mostly they will want the larger the businesses.

    There are of course other advisors that may be included in your business transition and business sale team. Some may include staff members. You need to realistically consider where you need help and assistance, understanding that any advisor bought into the team should be able to show you and justify to you where they can add value to the process. It’s best to ask around and ask for references from your advisors.

    Your aim should be to maximise business value and to meet your personal objectives during and post the transition phase. The choice of the right “horses for courses” team is therefore a vital component to achieving these goals.

    At Ascent Partners, as an Australian printing industry specialist, we offer the following transition and business sales services:

    • Business appraisals
    • Business planning and transition advice
    • Act as your business sales agent (around 30 print related business sold).

    Richard Rasmussen can be contacted at Ascent Partners (1300 887 648 or mobile 0402 021 101). For further information or visit www.ascentpartners.com.au

  • Richard Rasmussen Market Watch June 2012

    There was much movement at the station this week with SEMA’s creditors giving the green light for a management buyout of the embattled essential mail provider. Industry consultant, John Stewart, who has been named as the company’s new managing director, led the buyout.

    Meanwhile, Fairfax Media was no favourite of the Australian Manufacturing Workers Union (AMWU) after failing to consult with staff before announcing it will close down its two largest newspaper-printing facilities at Chullora and Tullamarine as part of its restructuring efforts.

    The media giant will be sacking up to 1,900 people from its operations over the next three years as it changes the format of its two leading broadsheets, The Sydney Morning Herald, and The Age, and transforms the operational structure of its entire news network to become a digital first organisation.

    Further afield, PaperlinX has decided to sell off three of its largest international paper businesses to help give the struggling company the liquidity it requires to complete its ongoing restructure. It has agreed to sell its US businesses, Spicers USA, and Kelly Paper for $76 million to New York-based Central National-Gottesman Inc.

    Some good news, a multi-million dollar contract win in New Zealand for OPUS Group’s Omnigraphics NZ will allow an expansion for the company in the large-format sector in the NZ marketplace.

    Southern Seaboard Commercial Printer for Sale

    This longstanding A1 Commercial printer ticks all the boxes – turns over circa $10,000,000, is highly profitable, has modern plant and equipment, a good mix of mainly clients, and has excellent staff. It can be run under management. The price will be provided on Application to qualified prospects.

    This business is a complete service provider, and is well known in its market niche. Would suit a wide array of purchasers –an interstate printer wanting to have a southern seaboard base, A2 printer wanting to grow to A1, or perhaps A1 printer wanting an equipment upgrade and more turnover. It’s priced to sell and provide a quick ROI. Interest can be registered at www.ascentpartners.com.au

    The above provides a summary of the market activity reported during June. You can find more details on these stories from our Market Watch web page, at www.ascentpartners.com.au. Here you can download this and previous editions, and also subscribe to our free monthly Market Watch bulletin.