Ennis Completes Crabar/GBF Stock Acquisition
Manufacturer Ennis Inc. completed its acquisition of the outstanding stock of Dayton, Ohio-based Crabar/GBF on June 30. Crabar/GBF produces long and medium run printing, pressure sensitive labels and form/label combinations in facilities located in Cerritos, Calif.; Bellville, Texas; Princeton, Ill.; Medfield, Mass.; Edison, N.J.; El Dorado, Mo., and Leipsic, Ohio, along with an administrative center in Dayton, Ohio. Midlothian, Texas-based Ennis is a private-label printed business product supplier with 37 production facilities in 16 states.
Office Supply Turf WarComing to U.S. Northeast
The battle between the two largest U.S. office supply retailers will officially cross over into Northeast territory late in the fall. That's when underdog Office Depot Inc., equipped with a new store design, will begin to double its presence in a region long dominated by industry leader Staples Inc. For at least a year, the fight for the industry's No. 1 spot hasn't been much of a contest, with Staples comfortably on top. Most analysts that cover the two companies are quick to praise Staples, which has a market capitalization of about $14 billion--more than twice Office Depot's $5.6 billion. But after a year in second place, Office Depot has launched its biggest initiative in more than a decade. The company hopes a new retail format and a large push into the Northeast will lift sales and profits, while taking market share from its chief rival.
Paper Price-Fixing Investigation Underway
Several paper/forestry firms are under investigation by antitrust officials on both sides of the Atlantic regarding price-fixing and manipulation of markets for magazine paper sold in the United States and elsewhere. Local and European Union antitrust authorities conducted raids at Finland's UPM-Kymmene, Stora Enso, Metsaliitto and M-realm, and Norway's Norske Skog firms. U.S. and Canadian authorities cooperated.
International Paper Co., Stamford, Conn., said U.S. officials contacted the firm in connection with the probe. Avery Dennison Corp., Pasadena, Calif., confirmed that European Commission and other national regulators visited and collected documents from its pressure-sensitive materials facilities in the Netherlands and Germany. Officials of Georgia-Pacific Corp., Atlanta; Louisiana-Pacific Corp., Portland, Ore.; and Weyerhaeuser Co., Federal Way, Wash., said they hadn't been contacted. The U.S. Justice Department confirmed it's investigating possible anti-competitive practices in the market for magazine paper.
International Paper Completes Acquisition of Box USA
International Paper completed its acquisition of Box USA on July 1. This acquisition is consistent with International Paper's strategic direction to grow its three core businesses of paper, packaging and forest products. International Paper will begin integrating Box USA's 24 industrial packaging converting facilities and containerboard mill into its industrial packaging business, which comprises 11 paper mills and 77 converting facilities worldwide.
Presstek to Acquire Precision Lithograining
Hudson, N.H.-based Presstek Inc., a supplier of digital imaging solutions for the graphic arts and laser imaging markets, plans to acquire Precision Lithograining Corporation, a South Hadley, Mass.-based supplier of printing plates. The cash transaction, valued at approximately $13 million, is expected to close in the third quarter of 2004. The companies plan to maintain their respective operations, with Precision operating as a wholly-owned subsidiary of Presstek. Precision's plate-product portfolio includes conventional and digital printing plates for web and sheet-fed applications.
Uncoated Free-Sheet Prices Continue to Rise
The North American uncoated free-sheet market remains tight with most mills on allocation or reservation systems and customers scrambling for supply, according to newsletter Pulp & Paper Week. Pricing for commodity cut size and offset rolls continues to climb toward list levels. Pricing for 20-lb. cut size is approaching $810/ton list price, with some lag on longer-term contract, tax-supported and retail-channel business. Pricing for offset paper also has increased toward the list of $670/ton for 50-lb. rolls, with some contract business still in the $600-$640/ton range, according to the newsletter.
Bar Codes To Get One More Digit
The New York Times reported that by Jan. 1, American retailers' bar code scanners will be expected to read the global bar code standard, the European Article Numbering Code. The required changes in computer systems and software programs has echoes of the Y2K computer problem. The American Universal Product Code, which turned 30 years old last month, has 12 digits. When the Europeans set up their bar code in 1977, they added extra digital space for more products and identifying countries. (There were 12 nations in the European Community at the time.) So the European code has 13 digits, one more than the code used in the United States and Canada. The 13-digit code took off and is used in most other countries. The Uniform Code Council, the North American arbiter of bar codes, has told North American retailers that bar code scanners will have to read the 13-digit codes by January. The 12-digit codes don't die; systems that can read 13-digit codes also can read 12-digit codes.
