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Graphic Arts Advisors Announces Acquisition of Commonwealth Mailing by McClung Companies

Friday, January 18, 2019

Press release from the issuing company

Acquisition met Commonwealth owner’s goal of providing continued employment for staff and uninterrupted quality service for customers.

Mountain Lakes, N.J. – McClung Companies, Waynesboro, VA-based firm providing printing, marketing and digital services, has acquired full-service mailing company Commonwealth Mailing Systems, LLC, Richmond, VA. Graphic Arts Advisors, LLC (GAA), Mountain Lakes, NJ, a strategic financial advisory and consulting firm devoted exclusively to all sectors of the graphic communications industry, represented Commonwealth Mailing in the sale, with GAA Director Mitch Evans, serving as lead advisor and GAA Managing Director Mark Hahn providing support.

“This transaction underscores an industry trend in which commercial printers are seeking to buy mailing services companies, not only to acquire the customer base but also to expand their services roster with mailing to provide customers with a more comprehensive solution for their print and marketing needs,” noted GAA’s Hahn.

In seeking an exit strategy from ownership of Commonwealth, Michael Muldowney, now principal of Muldowney & Associates, hoped to find a buyer who would provide continued employment for his staff of 25 and uninterrupted service to his client base. He also knew that Commonwealth had grown to the point that it needed a larger organization with more business infrastructure to support it.

“In helping to guide me through the process, GAA identified McClung Companies as a suitable potential buyer,” recalled Muldowney. “They were a successful company with a sales force, management team, human resources, and other infrastructure that would help bring Commonwealth to the next level. Our company also needed capital investment and McClung was able to provide that.”

“While Michael would have been open to a tuck-in sale if no other agreements arose, he was very pleased with the fact that McClung would continue operations in Commonwealth’s existing Richmond facility and retain its employees, both of which made for a very smooth transition,” said GAA’s Evans.

In addition to growing organically, McClung has relied heavily on acquisition as a growth strategy, having acquired 11 companies over the past 30 years. Through the acquisition of Commonwealth, McClung achieved its goals of significantly expanding its mailing services, gaining a staff with expertise in mailing operations, and expanding the company’s client base.

“We had provided some mailing services out of our printing facility, but only a small percentage of what Commonwealth offers. Diversifying our mailing services more fully enables us to provide a deeper level of service to our client base,” said Adam Monk, President of McClung Companies. “The acquisition also helped us strengthen our position in the Richmond market. We had some clients there, but they were on the fringe of our core service area. Now we’re in a prime position to grow our business with them.”

In bringing Commonwealth Mailing Systems to his attention as a potential acquisition, Monk credits GAA with “identifying and unveiling an opportunity I would have been otherwise unaware of.”

“Mitch and Mark did a great job of advocating for me during the sale process, negotiating in a way that ultimately resulted in a win-win for both parties,” said Muldowney.

About Commonwealth Mailing Systems (https://www.commonwealthmailing.com/) Commonwealth Mailing is a full-service mailing firm that offers a variety of high-quality, dependable, and professional services for clients in any business. Services include data processing; list maintenance; printed materials; last-printed products; full-service mailing; inkjet addressing; mailing fulfillment; ad mailing list procurement. Commonwealth Mailing is committed to ensuring the confidentiality, privacy, integrity and availability of all electronic protected health information (ePHI) and other data that we receive, maintain, process and / or transit on behalf of our customers. We strive to maintain compliance, proactively address information security, and mitigate risk for our customers.

About McClung Companies (https://www.mcclungco.com/) McClung Companies seeks to deliver an exceptional customer experience and be recognized as the region’s premier experts for comprehensive printing, marketing, and digital services. In addition to offset, digital, and wide format printing, services include design, digital storefronts, promotions and apparel, mailing, fulfillment and warehousing, and web services.

About Graphic Arts Advisors, LLC. Graphic Arts Advisors, LLC (graphicartsadvisors.com) is a boutique strategic financial advisory and consulting firm focused exclusively on the printing, packaging, mailing, marketing services, brand management, and related graphic communications industries. Services include mergers and acquisitions; strategic advisory and facilitation; capital structure and funding; business valuations; corporate restructuring; family succession planning; board-level advisory services; and expert analysis, opinions, and testimony.


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