POTTS PRINT (UK) IS LOOKING AT bolt on acquisitions as a means of fuelling growth for what is already the largest commercial printer in the north east of England.
The company has sealed a first deal, acquiring Bakershaw Print, which this week moves into the Potts factory in Cramlington. Bakershaw’s staff were introduced to their new home on Friday, a day after the deal was sealed. However talks had begun several months before this and the two companies have collaborated on a number of projects to build a commercial relationship ahead of completion, testing pricing models, quality and service.
This will reassure Bakershaw’s customer base, which will continue to be looked after by sales director Geoff Armstrong, who gains a Potts business card, email and phone number in a business development role. His aim will be to offer the extended range of services that Potts Print (UK) can deliver to a largely local customer base, so increase revenue per customer. Equipment that is required from the Bakershaw six miles away in Longbenton will be moved in coming weeks with the factory closing completely thereafter.
However, Potts Print already has enough equipment to easily accommodate work from Bakershaw. There are five digital print presses in the Cramlington industrial estate factory for example. The eight production staff joining from the acquired business will gain the possibility of working on an extended range of equipment, including B1 presses and mailing lines. Bakershaw’s managing director Barry Billingham takes up a production role.
Potts Print CEO Michael Sandford-Couch sees this deal as a model for others to follow. “I have had early stage discussions with several owner-managers seeking a potential strategy for exit or retirement from their business and I would expect to complete another acquisition in the litho, digital colour, direct mail or wide format printing arena towards the end of 2015,” he says.
Ahead of then the business will be looking to accommodate the commercial and print division in a standalone factory. The volume of work passing through the five existing digital presses is putting pressure on the allocated space and the two Friedheim International-supplied Buhrs mailing lines have been located on a mezzanine floor. New customers secured this year have been looking for digital print and mailing and combined with the approximately £500,000 of sales from Bakershaw, that pressure is going to increase. Sandford-Couch says this move would take place “later in 2014”.
Expansion into wide format is a next logical step says creative and technical services director Ian White. “We have reeled inkjet for proofing but not for banners or display print,” he says. “We have the requirement for this work from customers and we currently outsource this. With direct mail we were also outsourcing until it made sense to invest to bring personalisation and mailing in house.
“We could do the same for wide format, but some kind of acquisition within the next 12-18 months is more likely.”
Bakershaw becomes part of Potts Print (UK): Geoff Armstrong, Mark Devine, Potts commercial director and Barry Billingham, Bakershaw.
