A Year of Embezzlers, Closures, USPS Woes –Michelson
Likewise, we reported on numerous printing plant closures throughout the year. Quad/Graphics, ranked as North America’s second largest printer on the Printing Impressions 400, likely led the downsizing charge, albeit not unexpectedly. Quad spent much of 2011 digesting its 2010 mega-acquisition of Worldcolor (Quebecor) in an attempt to better align its overall output capacity with market demands. RR Donnelley—Quad/Graphics’ even larger rival and listed #1 on the 2011 Top 400—also downsized its commercial printing operations, but it did make acquisitions during the year to further diversify into packaging and to enhance its CustomPoint Solutions Group, which provides content creation, management and delivery solutions. Unfortunately for publicly held RR Donnelley and Quad, though, their stock valuations have taken a beating on Wall Street—despite the much-needed, 80,000+ combined jobs that they provide to Americans on Main Street. Privately held Vertis, ranked at #7, was able to recapitalize its debt through a prepackaged Chapter 11 bankruptcy. And noted industry consolidator Consolidated Graphics (#8) slowed its M&A thrust in 2011, only seeking stronger, well-positioned companies that could add value to its portfolio. The aforementioned industry behemoths may have captured the bigger headlines, but the bevy of closures, tuck-in acquisitions and distress mergers that occurred among family-owned, smaller printers this year better represents the true “core” of our industry.
