http://targetreport.blogspot.com/?utm_source=2013-08+Target+Report&utm_campaign=2013-08+TR&utm_medium=email
Old school buys new
school. In an interesting twist, printing companies continue to buy leading
edge technology companies that may have at first been perceived as threats, but
have evolved into complementary services that satisfy the same market need...
Commercial printers are now fully engaged in the wide format business, exerting
pressure on companies that specialized in printing only wide and grand format
materials. Pazazz, a printing company in Montreal, Quebec, (and producer of the
infamous and viral “Printing’s Alive” videos), acquired Contact Image, also of
Montreal. Another commercial printing company, K&M Printing of Schaumberg,
Illinois, acquired National GraphX and Imaging. In the past, wide format
services could be a real and important differentiator for a commercial printer;
wide format now appears to be a “must have” for many in the commercial sector...
As we expected, the print management business continues to experience pressure.
In a deal that effectively transforms the former print broker, Workflow One,
into a real live printing company, the company was acquired by Standard
Register in deal that was primarily an assumption of Workflow One’s long term
debt. This is the third month in a row that deals have been announced in the
print management business, changing the landscape and growth curve in what has
been a very disruptive model for commercial printers. I suspect that there are
many commercial printers that are not unhappy to see the declining fortunes of
the print management firms and that eagerly look forward to the potential to
restore their direct relationships with their corporate clients; in effect
disintermediating the intermediators.
