Less art of the deal, it’s more the time of the deal

The inevitable outcome of a declining demand for print across the piece and from the fall out of Covid lockdowns is a rise in mergers and acquisitions activity. Stronger companies are using their leverage to become larger and smaller businesses, faced perhaps with the costs of reinvestment, are facing up to their loss of independence. Thus with the Thimm Group which, faced with the consolidation underway in corrugated packaging, has a agreed a deal with Saica and so too with Saxoprint posed to become part of the Cimpress group. Cimpress can better look after the formidable online printer than Cewe can.

It is not just here that cross border deals are taking place. The bars of Barcelona will be fertile ground for gossip in the display print sector having seen a couple of transatlantic deals take place last year, with more tipped to follow. And there continues to be activity in flexible packaging, in cartons and in labels. Even commercial sheetfed printing can get in on the act, after all Graphius from Belgium bought Park Communications not so long ago, though deals in this space are likely to be fewer. Unless that is trading arrangements with the EU  become closer and the UK once again becomes part of a larger market.

In many instances such deals are in part defensive to hedge against the overall decline in the industry by becoming more able to survive when times are tough and part aggressive as acquisition can be a short cut to gaining market share as it is quicker to buy position than to grow organically. It is of course possible to be both aggressive and defensive at the same time. When deals are international there are elements of improving service to equally international clients and to spread the risk load during uncertain times. Expect then to see and hear about more of this activity.