Consolidated Acquires Pair, Colville Returns

HOUSTON—Don't tell Joe Davis there is a recession.

The chairman and CEO of Consolidated Graphics, arguably the nation's leading commercial printing industry consolidator, is making a forward-looking statement at a time when many printers are content to ride out the economic storm. Two statements, really, with the announcement that his company has acquired two more commercial printing operations.

A third, perhaps even greater statement, by Consolidated Graphics is the return of its prodigal son. G. Christopher Colville has been named executive vice president, chief financial officer and secretary of the company he spent six years with previously.

Consolidated Graphics announced it has completed the acquisition of American Lithographers, a division of Smurfit Packaging. The company also acquired Carqueville Graphics, of Streamwood, IL. Terms of the transactions were not disclosed.

A letter of intent to purchase American Lithographers was signed last September. Its completion, as well as the Carqueville Graphics acquisition, were announced on February 7.

"As the largest printer in northern California, American Lithographers' extensive web capacity is key to our growth strategy," notes Charles F. White, Consolidated's president and COO. "In addition, this web capability greatly enhances the product offering for our other 16 operations in the western United States.

"We could not be more pleased to bring the outstanding customer base and fine reputation of American Lithographers to the Consolidated Graphics team."

American Lithographers has two California facilities, located in Hayward and Sacramento.

Founded in 1864, Carqueville Graphics is one of the oldest printers in the Chicagoland area. It produces large-format sheetfed commercial printing and allied services.

"Carqueville Graphics continues our acquisition strategy and expands our Midwest presence with the addition of one of Chicago's top sheetfed printers," Davis remarks.

There is little doubt that Colville will add M&A excitement back to the company where he helped engineer over 50 acquisitions with combined revenues exceeding $500 million. He left Consolidated Graphics in 2000 and became managing director of Murphy Noell Capital in Westlake Village, CA.

The man is widely regarded as one of, if not the, most dynamic performers in the industry consolidation theater and his return is a forward-looking statement by Consolidated Graphics in that regard.

"I believe Consolidated Graphics has a very bright future, and I am excited about this opportunity," Colville said in a statement. "With its strong balance sheet, the company is poised to capitalize on currently attractive acquisition opportunities to further expand its geographic footprint of high-quality, well-managed commercial printing companies.

"As the economy strengthens and the company continues to expand its national account base and CGXmedia capabilities, I am expecting Consolidated Graphics to generate significant long-term sales growth, profit improvement and shareholder value."

Notes Davis on Colville's return, "He played an instrumental role in the growth and success of the company during his previous tenure at Consolidated Graphics, and I expect that he will make a similarly significant contribution going forward."