STATE OF THE INDUSTRY - Far from Dead

Phase II Entered
If undisciplined "acquisitions for growth's sake" consolidation activity was Phase I, Consolidated Graphics, Mail-Well and Quebecor World have all taken direct action to move their corporate development activity into what we are calling "Phase II-Integration and Profitization." One new entrant, Kelmscott Communications, a San Francisco-based private company backed by J.P. Morgan, First Union and Duff Ackerman, is well into this "Phase II" and has embarked on its acquisition programs armed with well-defined integration plans. Kelmscott's pursuit of growth, guided and financed as it is by steely-eyed investors, speaks volumes about the future performance and the desirability of the commercial printing segment.