Distributors Form IBSA Alliance
A group of forms distributors launched the International Business Solutions Alliance (IBSA) in April. The alliance, which aims to give distributors a new business model to help them reduce costs, compete against the majors and grow, includes 18 members in 10 states.
"In every industry, strong independent dealers are banding together," said Paul Keith, IBSA's founder and president of distributorship Best Business Systems Inc., Bowling Green, Ky. "The time is right to take this step in the forms industry." He said opportunities for partnering with other distributorships and vendors will create a "new, dynamic marketing advantage for IBSA members and their suppliers."
IBSA membership is limited geographically; members don't compete against each other. The alliance is contemplating a range of services, including a national-account marketing program, strategic vendor buying programs, exclusive products and services programs, human resource assistance for employee recruitment and training, standardized accounting procedures, and software solutions.
Crabar, Witt Sell Assets
Dayton, Ohio-based manufacturer Crabar Business Systems and El Dorado Springs, Mo.-based manufacturer Witt Printing Co. sold substantially all of their assets to Centrum Equities, a privately held investment group based in Chicago. The new company is named Crabar/ Witt LLC, but the firm will continue to use the names Crabar Business Systems and Witt Printing Co.
Roger Brown, newly appointed president of Crabar/Witt LLC and a partner at Centrum Equities, said the firm is "aggressively looking for other forms manufacturers to add to the Crabar/Witt portfolio" and was negotiating with two companies in late May.
Crabar Business Systems is making capital contributions for new equipment, and is upgrading much of its existing equipment, said Lowell Lumpkin, the company's national sales manager. "We're determined to win new customers while keeping our existing customers with improvements in quality, better deliveries and competitive pricing," he said.
Ron Stacy, general manager of Witt Printing Co., said customers will have access to production capacities of both Crabar and Witt.
Printing Industry Continues to Downsize
The printing industry downsized by approximately 60,000 employees in 2001 and the trend continued in the first quarter of 2002, according to a quarterly market survey by The Printing Industries of America (PIA). Approximately one-third reduced headcount, and 15 percent said they added employees. The top reasons cited for headcount reductions were layoffs from slow business, not replacing retiring employees and productivity improvements.
"Some printers are already seeing a gradual positive trend with regard to their businesses," said Dr. Ron Davis, PIA's chief economist. "However, there are still more jobs being lost than created. While the national economy seems to be on an upswing, printers are at the tail end of that growth."
IKON Settles Litigation
Valley Forge, Pa.-based IKON Office Solutions reached an agreement to settle, subject to court approval, the class-action lawsuit brought against it and other defendants. The litigation contends that the firm and some of its present and former officers, directors and employees breached fiduciary duties owed to participants in the company's 401(k) plan from October 1995 through August 1998.
IKON Office Solutions agreed to make modifications to its 401(k) plan, allowing participants greater flexibility with respect to investment of the employer-match portion of their accounts. The employer match is made in company stock and may not be transferred into other investment options available in the 401(k) plan until the employee is 55 years old. Under the settlement, employees who have been with the company for at least two years will be permitted to place company-matching funds in investment options other than IKON stock, subject to vesting schedules.
IKON Office Solutions isn't making monetary payment to the class to settle the lawsuit, and the settlement doesn't reflect admission of liability by the company.
Earnings Rise, Sales Drop at Moore, Reynolds
Toronto-based manufacturer Moore Corp. Ltd. announced earnings of $12.5 million, or 11 cents per share, for its first quarter ended March 31. During the same period last year, Moore reported a net loss of $201.5 million, or $2.28 per share (including restructuring and other nonrecurring charges).
Moore's first-quarter sales met budget expectations of $529.5 million, down 7.8 percent compared with the same period last year. The decline resulted in part from the firm's decision to exit unprofitable forms and labels businesses.
Dayton, Ohio-based manufacturer Reynolds and Reynolds Co. announced earnings of $29 million, or 39 cents per share, for its second quarter ended March 31. Earnings were up 21.8 percent compared with the same period last year. The company reported second-quarter sales of $245 million, slightly below last year's $250.1 million.
BCT Merger Stopped
Fort Lauderdale, Fla.-based BCT International Inc. said the merger plan announced last November among Phoenix Group of Florida, Phoenix Acquisition Corp. and William A. Wilkerson has been terminated by mutual consent of the parties.
The merger plan involved the purchase of all shares of BCT's common stock not already owned by the acquisition group at a price of $1.13 per share. The group withdrew its offer to acquire the shares and informed BCT it has decided not to pursue the acquisition.
BCT International Inc. is a holding company that includes a paper products division and Business Cards Tomorrow franchises. It operates one of the world's largest wholesale printing chains.
Wallace, Stralfors Form Partnership
Lisle, Ill.-based manufacturer Wallace signed an agreement of strategic cooperation with Stralfors, an information logistics company based in Ljungby, Sweden. The agreement focuses on streamlining processes associated with traditional, digital and electronic printing. Wallace expects the partnership will result in new products and services as well as cost savings. Stralfors has locations in 11 countries and 1,900 employees.
M. David Jones, chairman of the board and CEO of Wallace, said Stralfors is an "ideal partner" because it has a strong position in the European market, technical-development expertise and similar customers with similar needs.
Government Printing Office May Lose Exclusivity
A Civil War-era agency would lose its government printing monopoly under a Bush administration requirement for competitive bids on some $500 million in yearly contracts, the Washington Post reported in May.
"The time has come for the executive branch to liberate its agencies from a monopoly that unfairly penalizes both taxpayers and efficient would-be competitors," budget Director Mitchell E. Daniels Jr. said in a memo to federal agencies, the Post reported. The Office of Management and Budget, headed by Daniels, estimated the government would save $50 million to $70 million annually in printing and copying contracts now handled exclusively by the Government Printing Office. That's the amount in special fees the GPO charges when it acts as a middleman by contracting out printing jobs to private companies, the office said in the Post story.
The White House directive would eliminate the middleman role and allow private companies--as well as the government office--to bid for the work. GPO spokesman Andrew Sherman said the plan would increase costs by 50 percent because companies would have to hire large sales forces to search for government contracts, the Post reported.
