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Print Solutions February 2006

INDUSTRY NEWS

MATLET Group Acquires 5 Quebecor World Facilities
Quebecor World Inc., Montreal, and the MATLET Group LLC, a newly formed entity, said that the MATLET Group acquired five Quebecor World's U.S. facilities in a management buy-out. The facilities specialize in commercial printing, packaging, fulfillment and pre-media services. The purchase price for the transaction is $70 million, subject to certain adjustments. With annual revenues of more than $135 million, the MATLET Group's operations include the Acme Printing Company, Wilmington, Mass., Central Florida Press, Orlando, Fla., Packaging Graphics, Pawtucket, R.I., Nova Marketing Services, St. Louis, and Premedia Services, Detroit. With more than 600 employees, the company produces catalogs, magazines, inserts, blister card and folding carton packaging, casual dining menus, annual reports and other collateral materials.


MeadWestvaco Acquires Design Firm, Opens Packaging Center
MeadWestvaco Corp., Stamford, Conn., acquired DZN, The Design Group, a full-service design and marketing company. The move enhances MeadWestvaco's package design capabilities, which will now offer a complete range of design, printing, prepress and manufacturing capabilities. Additionally, the company launched the Packaging Innovation Center at its Richmond, Va., office. It features demonstrations of packaging technologies and capabilities. Customers experience the possibilities of package design through hands-on exposure to multiple materials and finishing options. The facility showcases the latest features and applications in packaging solutions, including RFID technology, anti-counterfeiting technologies, and interactive "smart packaging" concepts.


Ennis to Acquire Tennessee Business Forms
Ennis Inc., Midlothian, Texas, entered into an agreement to acquire Tennessee Business Forms/ Avant-garde (TBF), a privately held company headquartered in Tullahoma, Tenn. Ennis will purchase TBF's outstanding stock, and the associated land and buildings from a partnership which leases the facility to TBF. The move is part of Ennis' growth strategy through acquisition of complimentary manufactured products. Ennis now will offer additional short run print products and solutions, and integrated labels and form/label combinations. TBF reported sales of $2.2 million for the year ended Dec. 31, 2004. Robert Boldig, president and CEO of TBF and a member of the Board of Trustees of the  Print Education & Research Foundation (PERF), will stay on as general manager and assist the company in developing other product lines. Additionally, Ennis reported financial results for the quarter and the period ended Nov. 30, 2005. Net sales increased $39.9 million over the same quarter last year and $198 million over the comparative 9-month period last year. Profits increased 65.6 percent for the quarter, and 93.8 percent for the 9-month period ended Nov. 30.


NewPage May Sell 2 Chillicothe Mills
Union leaders said that NewPage Corp., Dayton, Ohio, held talks with a potential buyer for its two Chillicothe, Ohio, mills, according to the Dayton Business Journal. "The Dayton-based company and a committee of employees had been exploring the feasibility of an employee buyout of the mills for the past several months, but NewPage halted those discussions two weeks ago to pursue talks with an interested buyer, said John Allen, international representative for United Steelworkers of America, whose assignment includes Locals 731 and 988, which represents the 1,400 hourly workers at the mills," the story said.


Gartner: RFID Spending to Surpass $3B in 2010
Worldwide RFID spending is expected to total $504 million in 2005, up 39 percent from 2004, according to research firm Gartner Inc., Stamford, Conn. RFID will gain broader industry adoption with business value-focused implementations toward the end of 2006 when new license revenue totals $751 million. By 2010, Gartner forecasts worldwide RFID spending to surpass $3 billion. Analysts said companies shouldn't think of RFID tags as a replacement for bar codes. Instead, the two technologies will coexist with users applying the right data collection technology for the right process.


American Wins Health Care Contract
American Solutions for Business (ASB), Glenwood, Minn., signed a 3-year agreement with El Centro Regional Medical Center (ECRMC), El Centro, Calif., to provide forms, labels, printing, envelopes, marketing pieces and promotional products. In 2005, ASB signed a purchasing agreement with Novation, the largest medical group purchasing organization (GPO).


Boise to Restart Shift at Oregon Mill
Boise Cascade, Boise, Idaho, restarted the second shift at its La Grande, Ore., sawmill. It curtailed the shift on Oct. 31, a move that impacted approximately 70 employees. The company is recalling the employees and will hire new ones to fill positions vacated by those who relocated to other Boise facilities.
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