Quad/Graphics to Acquire Courier Corp. as Part of Strategy to Transform Book Platform

Quad/Graphics Inc. and Courier Corp. jointly announced a definitive agreement by which Quad/Graphics will acquire Courier, a leading innovator in book manufacturing, publishing and content management. The acquisition accelerates Quad/Graphics’ three-year strategy to transform its book platform, which the company announced earlier this week.Under terms of the agreement, Quad/Graphics will acquire Courier in a transaction valued at approximately $260 million, including approximately $25 million in net debt and capital leases as of Dec. 31, 2014. Quad/Graphics will pay Courier shareholders the equivalent of a total purchase price of $20.50 per share, consisting of cash and shares of Quad/Graphics Class A common stock. Each Courier shareholder will have the right to elect to receive cash or Quad/Graphics common stock, subject to proration in the event that shareholders elect to receive more than 54 percent cash or more than 46 percent stock. Quad/Graphics will pay an aggregate amount consisting of approximately $129 million in cash and approximately 4.8 million shares.The transaction has been approved by both companies’ boards of directors and is subject to customary closing conditions, including regulatory approval and approval by Courier’s shareholders. Quad/Graphics expects the acquisition to close by mid-year, be accretive to earnings in 2016, and that the purchase price multiple will be less than five times Adjusted EBITDA after taking into account anticipated synergies. Upon closing of the transaction, James F. Conway III will join Quad/Graphics as president of the Book Division.”We are excited about the opportunities ahead with Courier as part of our company, and the value it creates for both our companies’ clients and shareholders,” said Joel Quadracci, Quad/Graphics chairman, president and CEO. “Courier has a legacy of superior quality and exceptional customer service, and is a well-known innovator in every aspect of book production, from content management to printing, binding, distribution and integration with electronic media.”Courier was an early adopter of the digital print technology that is rapidly changing the dynamics of the book industry, Quadracci explained. “Using digital technology, Courier pioneered the development of customization solutions that now bring class-specific versions of academic textbooks to millions of students each year. The company has continually reinvested in its platform, and with our previously announced investment in 20-plus digital presses and integrated systems, together we will accelerate a broad industry transition to a print-on-demand, zero-inventory model.”

Said James F. Conway III, Courier’s chairman, president and CEO: “After a careful and thorough evaluation process, the Courier board has determined that the transaction with Quad/Graphics maximizes value for our shareholders. The board strongly believes that this transaction achieves that result, providing a substantial premium for our shareholders.”

Conway continued: “I am delighted to bring Courier together with another company that shares our values, offers complementary capabilities and opens up a world of additional opportunities. We are confident that the combination of our two companies will create the most opportunities for customers and employees well into the future. Like Courier, Quad/Graphics represents the very best in technology and service for the 21st-century marketplace. The addition of Courier’s four-color offset presses, digital inkjet presses, end-to-end process management and integrated software solutions further enhances Quad/Graphics’ efforts to transform the book industry to the benefit of publishers and readers everywhere.”

Quadracci concluded, “We look forward to welcoming Courier’s clients and employees to Quad and redefining the book supply chain for the benefit of publishers everywhere.”

Staples Enhances its Retail Signage Offering with HP Scitex FB10000 Industrial Press

Staples Print Solutions, the printing division of Staples Advantage, has added an HP Scitex FB10000 industrial press to its Cincinnati facility, providing enterprise customers a larger variety of signage and banners, retail graphics and display applications. The press also enables Staples to bring its own retail signage production in house, reducing turnaround time and costs.“Staples is committed to delivering best-in-class printing solutions and continuously expanding its capabilities to meet customers’ needs,” said Jeff Crump, vice president and general manager, Staples Print Solutions. “The HP Scitex FB10000 industrial press, in conjunction with our national fulfillment platform, provides customers with a scalable solution for their complex display and seasonal signage programs and allows our customers to print a variety of large signs, banners, retail graphics and display applications on a wide range of media.”Powered by HP Scitex High Dynamic Range (HDR) Printing Technology, the HP Scitex FB10000 industrial press helps Staples meet the high-quality signage needs of discerning brands. HP Scitex HDR Printing Technology delivers dynamic dot-size control for precise color and tone and 16-gray-level printing with the ability to produce up to 1,000 B1 sheets in less than two hours.The HP Scitex FB10000 industrial press joins Staples’ fleet of HP digital printing technology across the United States and Europe, including HP Designjet large-format printing equipment, two HP Indigo WS6600 digital presses and an HP Latex 260 printer.

Greenhouse Graphics goes greener with ‘game-changing’ press

Commercial printer Greenhouse Graphics has invested around $758,000 in a Komori Lithrone S429 with H-UV curing to benefit from its production efficiencies and environmental credentials.

The four-colour B2 16,000sph press was installed and commissioned at the Basingstoke-based firm’s premises over the Christmas period and is now in full production. The press is the first Komori that the firm has bought new and has replaced a 14-year-old five-colour Lithrone 528, which has been part exchanged.

Managing director Ian Crossley said: “Komori’s H-UV process is a real game-changer. We first saw it at Ipex in London last year and, having very carefully evaluated it alongside other new UV alternatives, we feel that Komori is ahead of the curve and leads the field with its H-UV technology.

“It’s a proven system, and we’re further re-assured by Komori’s commitment to guarantee the process. Even so, we would probably not have moved up to a new press had it not been for the serious all-round benefits H-UV and the latest Lithrone on-press features will deliver to us.”

The company, which has 11 staff and a turnover of around £1m, has experienced growth over each of the past two years.

“A new press is such a critical commitment that even after trialling the H-UV Lithrone at Komori’s technology centre and visiting H-UV users, we needed to exhaustively analyse the financial and production implications,” said Crossley.

“This included calculating monthly output, platemaking savings, time and material savings and the various gains we could expect to make through faster customer response.

“We concluded that, along with a move to extended day working, the new Lithrone would enable us to increase our turnover by 50% to £1.5m in the next two years and simultaneously decrease our production costs.

“We’re just going to the market now and telling people about it and we’re organising some demonstrations to show people what it’s capable of doing.

“The press’s KHS-AI fast makeready and de-inking technologies will undoubtedly reduce waste and we’ll save further material and time on our work-and-turn jobs, where the H-UV curing will enable us to back sheets up immediately, with no intermediate blanket wash and no additional makeready.”

Crossley said another main driver for the purchase was the environmental benefits of the press, which are in line with the company’s own green ethos.

“In addition to reducing waste, it enables us to totally eliminate spray powder from the factory, print completely alcohol free and noticeably reduce our energy levels. In addition, with no requirement any more for a fifth unit to seal jobs, we’re making floor space and consumable savings,” said Crossley.

Greenhouse Graphics also operates a B3 Ryobi litho press, a Screen LED UV flatbed, Roland roll-to-roll machinery and finishing equipment including Stahl folders, a Heidelberg Cyldinder and a Horizon stitch-fold-trim device.

The business was established in 1993 with the aim of delivering a more sustainable approach to print and related services. Its services include strategic marketing consultancy, large-format printing, signage and vehicle livery production.

The firm uses only FSC paper and it was the first UK commercial printer to install PV solar panels in 2005 and introduce hazardous waste-free colour printing in 2007. In 2010 it developed its own carbon calculator for printed products, giving print buyers key carbon information prior to printing.

“Our clients include many colleges and local education establishments and our environmental policies and transparency suits their ethos,” said Crossley.

“We print several magazines and, with the new Lithrone, we anticipate that these and many other jobs we print will be produced carbon-free before the end of the year.”

The New York Times new supersize capabilities

Goss International has completed a press enhancement project with Innotech involving the installation of full-color panorama gatefold capabilities for The New York Times. The new formats allow the publisher to offer advertisers innovative placement opportunities to create maximum impact.

Completed to a tight schedule of around 20 weeks from initial order to the first test run, the project involved retrofitting each of two existing Goss Colorliner press lines with a custom-configured Innotech Panorama Gatefold System.

According to Dan Picco, regional sales manager at Goss, the project called on the full and combined expertise of all parties involved: “Obviously, for a publisher operating on the scale of The New York Times, there is no time to lose and there can be no disruption to ongoing daily production. We had to establish failsafe processes from the outset and make sure we achieved the highest level of teamwork. The fact that The New York Times is already enjoying the benefit of the new capabilities testifies to our joint success.”

The gatefold system now running at The New York Times enables the Goss Colorliner presses to produce an additional four-page wide centerfold or a separate eight-page pull-out section, up to a maximum format of 48 x 22 inches (1219 x 559 mm). In addition, it is possible to make smaller gatefolds or coupon folds at one or both edges for special promotions providing new display areas for advertisers. It is also possible to make gatefolds in the cover page or have the gate folded section as a wrap around the main section.

The new capabilities have already been used to maximum effect by select advertisers in The Times.

Vinod Kapoor, president at Innotech concludes, “Goss and Innotech engineered a solution that gave The New York Times ultimate flexibility with regard to the positioning of specialized sections within the newspaper, without the need to purchase a new press.”

KBA-FT Engineering firms up older gravure press Professional retrofits instead of scrapping

KBA-FT Engineering, based in Frankenthal/Pfalz and member of the Koenig & Bauer Group, has given a 26-year-old gravure press belonging to European gravure printing giant Prinovis a new lease of life.
The electrical control system of the press, which is in operation at the firm’s site in Ahrensburg, Germany, was brought into line with cutting-edge technology. The retrofit was carried out within a short period of time to the firm’s satisfaction and means that this old, yet mechanically fully functional press is now fit for the future.Prinovis ordered retrofits on two large gravure presses from KBA-FT Engineering some time ago. The first press went into operation again at the end of March. Along with updating the second press’ electrical control system, provision is made for extensive mechanical add-ons, whereby the assembly work is scheduled to begin soon. In the current market environment such retrofits pay off since the continued high level of availability of robust presses is guaranteed at a fraction of the cost of a new press. The retrofit carried out comprises the replacement of several control components from the previous vendor, EAE, with the latest technology from Siemens. The existing wiring could be kept thanks to a Plug & Play architecture developed specially for the interfaces affected thus reducing the installation time at the reelstands, printing units, superstructure, folders and switchboards to a few weeks. Numerous servo-assisted drives were also exchanged including the corresponding controls as well as the complete control level.KBA-FT Engineering’s broad expertise in gravure has already been proven with other orders in the growing business for retrofits. Recently a gravure reelstand with Reliance controls and drives was rebuilt with Siemens technology in Thann, France. In the near future the firm will carry out an extensive upgrade on a press console close to Paris, which comprises the implementation of cutting-edge devices from HMI. The specially designed retrofit concept will facilitate the work of the client and deliver precise information about the status of the machines.KBA-FT Engineering has the know-how and the best references to perform retrofit and upgrades in the field of electronics and mechanics on older gravure presses competently and reliably, regardless whether the components are from Siemens, Bosch-Rexroth, ABB, Wago or other well-known electronic manufacturers.

Quad/Graphics to Acquire Courier Corp. for $260M as Part of Strategy to Transform Book Platform

Quad/Graphics Inc. and Courier Corp. jointly announced a definitive agreement by which Quad/Graphics will acquire Courier, a leading innovator in book manufacturing, publishing and content management. The acquisition accelerates Quad/Graphics’ three-year strategy to transform its book platform, which the company announced earlier this week.Under terms of the agreement, Quad/Graphics will acquire Courier in a transaction valued at approximately $260 million, including approximately $25 million in net debt and capital leases as of Dec. 31, 2014. Quad/Graphics will pay Courier shareholders the equivalent of a total purchase price of $20.50 per share, consisting of cash and shares of Quad/Graphics Class A common stock. Each Courier shareholder will have the right to elect to receive cash or Quad/Graphics common stock, subject to proration in the event that shareholders elect to receive more than 54 percent cash or more than 46 percent stock. Quad/Graphics will pay an aggregate amount consisting of approximately $129 million in cash and approximately 4.8 million shares.

The transaction has been approved by both companies’ boards of directors and is subject to customary closing conditions, including regulatory approval and approval by Courier’s shareholders. Quad/Graphics expects the acquisition to close by mid-year, be accretive to earnings in 2016, and that the purchase price multiple will be less than five times Adjusted EBITDA after taking into account anticipated synergies. Upon closing of the transaction, James F. Conway III will join Quad/Graphics as president of the Book Division.

“We are excited about the opportunities ahead with Courier as part of our company, and the value it creates for both our companies’ clients and shareholders,” said Joel Quadracci, Quad/Graphics chairman, president and CEO. “Courier has a legacy of superior quality and exceptional customer service, and is a well-known innovator in every aspect of book production, from content management to printing, binding, distribution and integration with electronic media.”

Courier was an early adopter of the digital print technology that is rapidly changing the dynamics of the book industry, Quadracci explained. “Using digital technology, Courier pioneered the development of customization solutions that now bring class-specific versions of academic textbooks to millions of students each year. The company has continually reinvested in its platform, and with our previously announced investment in 20-plus digital presses and integrated systems, together we will accelerate a broad industry transition to a print-on-demand, zero-inventory model.”

Said James F. Conway III, Courier’s chairman, president and CEO: “After a careful and thorough evaluation process, the Courier board has determined that the transaction with Quad/Graphics maximizes value for our shareholders. The board strongly believes that this transaction achieves that result, providing a substantial premium for our shareholders.”

Conway continued: “I am delighted to bring Courier together with another company that shares our values, offers complementary capabilities and opens up a world of additional opportunities. We are confident that the combination of our two companies will create the most opportunities for customers and employees well into the future. Like Courier, Quad/Graphics represents the very best in technology and service for the 21st-century marketplace. The addition of Courier’s four-color offset presses, digital inkjet presses, end-to-end process management and integrated software solutions further enhances Quad/Graphics’ efforts to transform the book industry to the benefit of publishers and readers everywhere.”
Quadracci concluded, “We look forward to welcoming Courier’s clients and employees to Quad and redefining the book supply chain for the benefit of publishers everywhere.”