Janus Capital Group Inc. reported their earnings today and announced plans to sell its printing business, Rapid Solutions Group (RSG). RSG reported a third quarter net loss of $38.6 million, which includes a $36.0 million impairment charge, net of tax. In light of Janus’ decision to sell its printing and fulfillment operations, the company evaluated RSG’s s assets, resulting in a write-down of a portion of goodwill, certain intangibles and fixed assets.

Originally RSG was the marketing division of DST Output Technologies. It was sold to Capital Group Partners in December 2003, a wholly owned subsidiary of Janus. The printing business has struggled to become profitable.

Last year Janus reported RSG loses between $3 and $5 million on about $20 million in revenue each quarter.

 

Background information compiled in October 2006 by PrintCEO blog on Rapid Solutions Group.

Janus Capital Group, an investment and mutual fund company with $158 billion in assets, owns a printing company called Rapid Solutions Group (RSG). Originally RSG was the marketing division of DST Output Technologies. It was sold to Capital Group Partners in December 2003, a wholly owned subsidiary of Janus. According to financial data issued by Janus, RSG loses between $3 and $5 million on about $20 million in revenue each quarter. In 2004, after Janus acquired RSG, the company purchased 6 iGen3's. The presses were installed in RSG's three digital production facilities in New York, Chicago and California. At the time, it was one of the largest installations of the iGen3 in the world. According to the Wall Street Journal, the iGen3's replaced HP Indigo machines.
Mr. Hil (Garet Hil, former CEO of Rapid Solutions Group) says he decided not to continue with the Indigo presses because he could produce an image 15% to 20% cheaper using the Xerox product and because the Xerox sales force had been more accessible than H-P's.
In October 2004, Printing News magazine wrote a story about the company and their new digital presses. Here's a quote from a senior executive:
"We think that many industries are ready to make that move," said Cynthia Bajana, vice president of consumer relations. "There's a lot of buzz around personalization and customization, and how personalization and customization will increase assets in the case of the financial services industry, as well as increase membership in the case of the healthcare industry."
Janus valued RSG at $115 million when it acquired the company in December 2003. Since Janus acquired RSG, the company has an operating loss of over $50 million. ($10.8 million in 2004, $29 million in 2005, $13 million through the 3rd quarter of 2006.) Janus views RSG as having little to no impact on their overall balance sheet. Janus is a major "customer" of RSG, but the company actively seeks printing just as any other printing company and operates separately. (See web site) In the past year, the company has named a new CEO/President, CFO and a new VP of Sales.