Each of these areas of expertise is a competitive advantage that can lead a company out of the commodity pricing trap. An undifferentiated generic commercial printer may not attract much attention from private equity firms unless it has sufficient scale in the markets it serves.
Industry M&A news over the past few years includes notable examples of private equity firms’ interest in the commercial printing space:
The most active buyer in the space is Marketing.com, owned by JAL Equity, a private equity investor that has made a number of commercial printing acquisitions, with New Direction Partners representing the seller. New Direction Partners represented CP Direct in its sale to Granite Creek Capital as the private equity group's first print investment. This worked so well for them that they subsequently acquired Salem One, which provided packaging and direct mail as well as commercial printing. Granite Creek transformed the acquisition into an independent direct mail platform.
After acquiring Prisma Graphic in 2022, CenterGate Capital is still looking for more opportunities to grow through acquisitions. New Direction Partners represented Sandy Alexander in its sale to Snow Peak Capital and subsequently acquired Abbott Communications, another of our sales clients.
We should not overlook the participation of strategic buyers in the commercial printing M&A market. Strategic buyers seek to acquire companies similar to their own, with the goal of long-term growth. Acquiring similar companies can spur growth by bringing in new customers; expanding the buyer's geographic reach; or adding products, services, and features that the buyer doesn't have.
We are familiar with very active national strategic acquirers such as CJK Group, Mittera and Taylor Enterprises. There are also many regional strategic acquirers looking for suitable opportunities. These buyers know that well-planned and executed strategic acquisitions can create value for everyone involved. Unlike private equity investors who have time-bound resale targets, they view acquisitions as enduring propositions for stability and growth. The continued presence of strategic buyers remains key to keeping the pace of M&A in the commercial printing space healthy and strong.