INDUSTRY CONSOLIDATORS -- Economy Ends M&A Frenzy

PI: Nobody seems to be making acquisitions right now. Why has the printing industry consolidation front become so quiet?

Norton: I believe that the consolidation front is quiet because (a) there's been a slowdown in the printing industry, (b) there's a possibility of a recession in the U.S., (c) consolidations have fallen out of favor on Wall Street and with other financing sources, (d) interest rates have been relatively high for the last year or so, and (e) sellers of printing companies still remember and think that their companies are worth the EBITDA numbers that were discussed during boom times. Earnings disappointments announced by the major, publicly owned printing consolidators also concern venture capitalists and other financing sources.