Paragon has completed the acquisition of the Lettershop Group, bringing to an end a lengthy process to secure the latest member of Paragon Customer Communications. Negotiations took place against the collapse and administration of the rest of the York Mailing Group.
Paragon says that TLG will augment its “strong organic growth performance and its capabilities”. TLG has extensive experience in what used to be referred to as special products, mailers with intricate folds, flaps, perforations and gluing that are produced on Scheffer finishing lines, perhaps with extensive Kodak inkjet personalisation. This led into printing paper wraps for magazines and more recently into recyclable ecommerce packaging that York Mailing Group had touted as a revolutionary product that would replace the decline of more traditional web offset products.
It operates web offset presses, mirroring those at Paragon’s Nottingham plant and Kodak inkjet which also matches technology at Bristol. Customers also overlap with those on other Paragon sites which will ease the integration process.
The company recorded revenues of £19.7 million in the year to the end of May 2020, up from £17.0m the year before and reporting n operating profit before exceptional of £237,000 compared to a loss of £821,000.
Vince Gidley, Paragon chief operating officer for the direct mail division, will take control over TLG with most of the staff and management team remaining in place. The commitment of the 142 staff at the Leeds company was a key part of the deal: “We are delighted to welcome TLG and our new colleagues to Paragon. Its industry knowledge, expertise and dedication to its customers will help to strengthen our position within an evolving market, and we are thrilled to begin working with its 142 committed staff members,” says Paragon Customer Communications UK CEO Jeremy Walters.
“This is a strategic acquisition for Paragon and we believe that the TLG packaging portfolios offer great potential to drive future growth and help us to diversity of offering to client and broaden the range of solutions available.”
The news has been greeted with relief by staff at TLG who have been waiting for the announcement over what has called “a tough few months”. Business development manager Danny Narey, posted on LinkedIn. “We look forward now to making The Lettershop shine again, and to working with customers and partners, old and new, to deliver the best direct mail and packaging solutions in the market.”
At the same time, the York site of the York Mailing Group has begun operating again under the ownership of Walstead. On the corporate website, Walstead describes innovation at the site as its driving force adding: “Under Walstead Group, we are taking this legacy and fusing it with state of the art equipment and our unparalleled printing expertise. As a result, Walstead York is unique in the sheer range and quality of technology, products and services it brings to the retail sector.
“We pride ourselves on marrying quality with speed. We excel at working to tight deadlines: thanks to our flexibility and quick turnaround capabilities, our retail clients are able to respond and react to demand. With Walstead York, we therefore reinforce our status as an industry leader.”
