Moore to Buy Wallace
Mississauga, Ontario-based manufacturer Moore Corporation Ltd. announced it will buy Lisle, Ill.-based manufacturer Wallace Computer Services Inc. for $1.1 billion in cash and stock, creating one of the world's largest providers of labels and forms. The acquisition is the biggest news among the industry's major direct-selling firms since Dayton, Ohio-based Standard Register purchased Barrington, Ill.-based UARCO in December 1997.
Moore, whose stock has tripled in the past two years after aggressive cost-cutting turned around the company, will pay Wallace shareholders $606 million in cash, $470 million in Moore common shares and assume $210 million of Wallace debt. Moore said it will pay $14.40 in cash per share and 1.05 shares of Moore for each share of Wallace. Moore said it will issue approximately 44.2 million common shares to Wallace shareholders, who will own about 28 percent of the combined company (called Moore Wallace).
The deal, subject to regulatory and other approvals, was approved unanimously by both companies' boards. When the acquisition is completed, Moore Wallace will have $3.6 billion in annual revenues and more than 18,500 employees worldwide. Mark Angelson, chief executive of Moore, will lead Moore Wallace. He became chief executive after Robert Burton stepped down at the end of last year.
Crabar/Witt Buys GBF Companies
Dayton, Ohio-based manufacturer Crabar/Witt LLC purchased the assets of GBF Graphics Inc., Arrow Business Forms and Graphics Inc., and Genforms & Labels Corp. GBF now is part of Crabar/Witt's business forms group.
The GBF operations will add four production facilities to Crabar/Witt's operations in Bellville, Texas; El Dorado Springs, Mo.; Leipsic, Ohio; and Edison, N.J. (the location of Edison Business Forms, which Crabar/Witt purchased in January). GBF's production facilities in Cerritos, Calif.; Medfield, Mass.; Princeton, Ill.; and Skokie, Ill., remain intact.
GBF customers will have access to the same products and services, as well as expanded offerings from the Crabar/Witt organization. Some of these offerings include direct mail, integrated labels, variable data and digital on-demand printing.
"GBF has invested over $6 million on new equipment in the past few years, along with the latest computer-to-plate system that was installed in the last quarter," said Lowell Lumpkin, Crabar/Witt's national sales manager. Roger Brown, Crabar/Witt's president, said acquisitions will continue to be a key element of the firm's growth strategy.
DMIA, IADT Unify
For almost 50 years, two Alexandria, Va.-based associations--DMIA and International Association for Document Technologies (IADT, formerly International Business Forms Industries)--have represented the forms and business printing industry. Now, as a result of industry maturity and evolution, one association will unite the industry and work to meet member needs.
In recent years, the boards of directors of both associations have directed DMIA and IADT staffs to develop joint programs such as the "Solutions" series of educational seminars for manufacturers and suppliers. This year, the boards agreed that the best way to meet the needs of both memberships was to offer services through one association. In a nearly unanimous vote, IADT members decided to dissolve their association and halt operations Jan. 20.
Most IADT members are DMIA members. Approximately 20 non-DMIA members will be allowed to test DMIA's services. IADT members also approved a transfer of its educational foundation to DMIA. A board of trustees consisting of DMIA members and former IADT members who have become DMIA members will direct the foundation's activities. The foundation's executive director is Peter L. Colaianni, CAE, DMIA's executive vice president. The foundation will be used to offer educational programs, industry research and market studies to distributors, manufacturers and suppliers.
Manufacturers Form UnigraphicsUSA Alliance
UnigraphicsUSA, a strategic alliance of five forms manufacturers, commenced operations. Members are Wright Business Graphics, Portland, Ore.; B&D Litho, Phoenix; Skyline Business Forms & Commercial Printing, Denver; The Flesh Co., St. Louis; and Superior Business Associates, Greeneville, Tenn. Those firms will retain their names and operate under their own management.
Through the alliance, distributors will be able to offer their large accounts a strong manufacturing presence nationwide. As UnigraphicsUSA grows, it will include only privately owned companies whose sizes, reputations, market areas and financial strengths will enhance the alliance, said Jim Anderson, president of UnigraphicsUSA. Members must sell predominantly documents, labels and/or commercial printing to the independent channel, he said.
