The Key to Success Is In The Details

At first glance, press releases announcing printing business acquisitions seem dry and verbose. But by extracting key details from the news releases, you can learn more about why some deals reach the finish line.

Printing-related M&A news also shows print-business owners how the competitive landscape is shifting. Acquisition news reminds them that they can’t afford to be complacent.

Here are three acquisitions announced in Q3 2020 that illustrate how different segments of the printing industry are joining forces to grow and better serve their customers.

Brook & Whittle to Acquire Innovative Labeling Solutions and Wizard Labels

Brook & Whittle is a North American manufacturer of premium prime labels for some of the largest global brands. At their eight production facilities nationwide, they make pressure-sensitive labels shrink labels, and medical packaging with a focus on sustainable packaging solutions and decorative effects. Brook & Whittle is majority-owned by the private equity firm Snow Phipps Group L.L.C.

In October, Brook & Whittle announced agreements to acquire Innovative Labeling Solutions (ILS) in Hamilton OH, and Wizard Labels in Parker, Colorado.

Jay Dollries founded ILS with Steve Wolf in Steve Smith in 1996 and started Wizard Labels with Steve Smith in 2013.

Innovative Labeling Solutions (ILS) is a full-service prime packaging provider that digitally prints labels for the household, personal care, beverage, nutraceutical, food, and industrial markets. The company bought its first digital press in 2005 and has focused its business model around fast-turnaround, short-run digital production. ILS has long-standing partnerships with several manufacturers of digital printing equipment and frequently serves as a beta testing site for new products.

Wizard Labels is an online product label company focused on the business-to-business label market. Wizard Label serves clients in the beauty, household, personal care, nutraceutical, CBD/cannabis, food, and beverage markets.

“We are thrilled to acquire leading providers of digital and custom online prime label solutions in North America. The founders of ILS and Wizard Labels have built remarkable companies that are exceptionally well-positioned for growth, said Mark Pollard, CEO of Brook & Whittle.

“Brook & Whittle, ILS, and Wizard Labels all focus on similar growth-oriented end markets and product categories, namely pressure-sensitive and shrink sleeves. We are eager to combine our efforts to collectively better serve our growing customer base,” said Don Sturdivant, Chairman of Brook & Whittle and Operating Partner at Snow Phipps

“ILS has proven its ability to maximize the capabilities of digital printing technology in unique ways to provide solutions for our customers,” said Jay Dollries, CEO of ILS. “The opportunity to leverage our know-how across the broader Brook & Whittle platform will truly enhance our ability to scale the business model and growth prospects. In addition, ILS and Brook & Whittle share similar cultures and values, so the partnership is truly a great fit.”

ILS and Wizard Labels are the fourth and fifth add-on transactions that Brook & Whittle anticipates completing since Snow Phipps’ initial investment in October 2017. Brook & Whittle acquired Prime Package & Label in November 2018, a shrink-sleeve facility in Croydon, PA in May 2020, and Label Impressions in June 2020.

The Brook & Whittle agreement with ILS and Wizard Labels was announced October 8, 2020. Read the full release.

Cimpress, the parent company of Vistaprint, acquires 99designs

Cimpress, the parent company of Vistaprint and other entrepreneurial mass-customization businesses around the world, has acquired 99designs based in Melbourne, Australia. Mass customization is a competitive strategy that seeks to produce goods and services to meet individual customer needs with near mass-production efficiency.

Founded in 2008, 99designs is a global online platform that makes it easy for freelance designers and clients to work together on designs for logos, websites, packaging, T-shirts, brand identity graphics, book covers, and similar creative projects.

The acquisition of 99designs will give Vistaprint’s 20 million customers a global platform through which they can access both professional design services and marketing products from one source. It will also give freelance designers on the 99designs network the opportunity to work with Vistaprint customers.

“The driving force behind Vistaprint’s future with 99designs is our passion to help small businesses,” said Robert Keane, founder and chief executive officer of both Cimpress and Vistaprint. “We know how critical great design is for entrepreneurs on their journey. 99designs and Vistaprint have shared values and vision to be a trusted partner to business owners and creators which lay the foundation for something bigger and more valuable than either of our teams could create alone.”

“In a year when the whole world has had to work together online, 99designs’ mission of championing creativity to bring opportunities to people around the world has never been more relevant,” said Patrick Llewellyn, 99designs’ chief executive officer. “We have been enabling remote creative connections for more than a decade and have seen firsthand how these fuel the success of small businesses and creators. Vistaprint’s belief and investment in both our team and technology is a testament to the enormous potential in human-powered creativity.” Vistaprint and 99designs agree great design can have a profound impact on a small business.

Cimpress invests in and builds customer-focused, entrepreneurial, mass-customization business for the long-term. In addition to Vistaprint, Cimpress businesses include BuildASign (Austin, Texas), Drukwerkdeal (Austria), Exaprint (France and Spain), National Pen (San Diego, CA), Pixartprinting (Italy), Print (Brazil), and WIRmachenDRUCK (Germany).

The Cimpress/99designs deal was announced October 5, 2020. Read the full release.

Circle Graphics acquires Bay Photo

Circle Graphics, a Longmont, Colorado-based leader in online ordering for digitally printed wall décor has acquired Bay Photo, Inc., headquartered near Santa Cruz, California.

Founded in 1976 by Larry Abitbol, Bay Photo delivers innovative photographic prints and photo finishing services to professional and serious amateur photographers and third-party channel partners. Bay Photo provides professional-grade photographic wall décor, albums, and specialty prints. With the acquisition of Bay Photo, Circle Graphics expands its footprint, expertise, and product breadth to further establish itself as the leader in the online wall décor market.

“Bay Photo enhances Circle’s presence in the professional photography and artist markets while expanding Circle’s product portfolio into the rapidly growing segments of metal prints, albums, and photobooks,” commented Andrew Cousin, Chief Executive Officer of Circle Graphics.

“Over the years we have searched for a partner that could leverage what we have built, provide scale and resources to help us exceed our goals, and align with the core values by which we run our business,” said Larry Abitbol. “We have found that partner in Circle Graphics.”

Bay Photo represents the second add-on acquisition that Circle Graphics has made since H.I.G. acquired Circle Graphics in October 2019. H.I.G. is a global private equity and alternative assets investment firm that specializes in providing debt and equity capital to small and mid-sized companies.

In addition to its Online Wall Decor division, Circle Graphics operates an Out-of-Home Visual Solutions division that is the leading large-format digital graphics provider to billboard operators in the U.S. In January 2020, Circle Graphics acquired Metromedia Technologies, the company that ushered in the age of high-quality digitally printed billboards and permanently changed the outdoor advertising industry.

This Circle Graphics/Bay Photo deal was announced September 16, 2020. Read the full release.

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