Print
Solutions June 2006
INDUSTRY
NEWS
Ennis
to Acquire Block Graphics
Ennis
Inc. entered into a letter of
intent to acquire substantially
all of the assets of Block Graphics
Inc. The acquisition, when completed,
will include the use of the trade
name Block Graphics. Ennis expects
that many Block employees will
become part of the Ennis team.
The
move continues Ennis’ strategy
of growth through acquisition
of industry firms that manufacture
products sold by print distributors.
The acquisition adds additional
short run print products (snap,
continuous forms and cut sheet
forms), as well as the production
of envelopes. Block Graphics had
sales of $35 million for the year
ended Dec. 31, 2005.
The
Ampersand Group, APTCO Sign Purchase
Agreement
The
Ampersand Group signed a purchase
and service agreement with APTCO
Inc., a purchase order funding
and administrative support company
based in Little Rock, Ark.
The
service agreement became effective
May and the purchase agreement
will be activated in five years.
During these five years, APTCO
President Al Pipkins, CFC, will
be responsible for sales of both
APTCO and Ampersand services.
Ampersand, a service company for
distributors, provides billing,
payables and receivables support,
sales tax reporting, warehousing
services, e-commerce software
support and group buying advantages.
APTCO serves 40 distributorships
in the East and Midwest.
Insurance
Problems Behind Belknap’s
Closure
Belknap
Business Forms Inc., a longtime
manufacturer of mailers, affixed
products, mailing services, foil
stamping, envelopes and plastic
products, is closing its facilities
in Mayville, N.Y. J. Buster Weinzierl,
CDC, president, said the manufacturer
will cease operations this month
after completing orders. He said
the reason for the closure is
insurance-related problems that
emerged after the April 1995 fire
that forced the company to rebuild
its facility. “That is the
crux of the problem,” he
said. “The decline in traditional
printed products also did not
help matters.” Weinzierl
said he will concentrate on his
future plans after the facilities
close.
Champion
Industries Announces Record Results
Champion
Industries Inc., Huntington, W.Va.,
announced record earnings of $1,578,000
for the second quarter of 2006
compared to a net loss of $97,000
for the same period in 2005. The
2006 second quarter reflected
double-digit revenue growth, improved
gross margins and improved selling,
general and administrative expense
absorption, the company said.
Office
Depot Acquires Allied Office Products
Office
Depot, Delray Beach, Fla., acquired
Allied Office Products, a Clifton,
N.J.-based distributorship. Allied
Office Products, which reported
more than $300 million in sales
last year, has a strong presence
in the Northeast. Its offerings
include coffee and janitorial
supplies, computer products, custom
printing, managed print services,
promotional items and office furniture.
Financial terms of the acquisition
weren’t disclosed.
“I
consider this to be a non-event
for the forms industry,”
said Jim Anderson, president of
Phoenix-based consultant group
Corporate Development Associates.
“Allied is a commercial
stationer, and Office Depot is
trying to penetrate Corporate
Express’ turf by selling
corporate accounts,” he
said, rejecting speculation that
Office Depot bought Allied to
strengthen their position in a
region where rival office supplies
retailer Staples Inc. also has
a strong presence.
Gail
O’Roke, CDC, CEO of Independent
Business Group, Hayward, Calif.,
disagrees. “Allied sells
about $25 million in print,”
she said. “I’ve toured
their facilities – they’re
full of forms, and they also do
forms management.” O’Roke,
who was DMIA’s 2002-03 president,
references the web sites and annual
reports of Office Depot and Staples,
citing instances where the companies
outline an aggressive approach
to printing and document management.
“Staples is also going after
East Coast corporate accounts,”
she said. “The majors of
this decade are going to be those
office supply guys.”
Consolidated
Graphics Will Not Sell Company
Consolidated
Graphics Inc., Houston, said it
will not sell the company to enhance
shareholder value. Instead, it
will continue with its current
strategic plan, along with a share
repurchase program. The plan focuses
on achieving sales and growth
through investment in new technology
and equipment, and a disciplined
acquisition program.
R.R.
Donnelley Opens Mail Consolidation
Facility in Texas
R.R.
Donnelley & Sons Company,
Chicago, opened a new mail consolidation
facility with complete distribution
management services in suburban
Dallas. “This new facility
positions R.R. Donnelley better
to serve direct response marketers,
magazine publishers, catalogers,
and other mailers in the Southwest,”
the company said.
Customized
Postage Goes Commercial
The
U.S. Postal Service signed contracts
with three vendors to produce
customized postage for First-Class
Mail, Priority Mail and Express
Mail for personal and commercial
use. Endicia, Zazzle and Stamps.com
will add the commercial application
to their existing agreements to
produce postage for personal use.
Customized postage allows a customer
to personalize postage with pictures
or images using Customized PC
Postage technology.
