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What Will RRD Acquisition Mean for CGX Businesses?

The announcement of the intent on the part of RR Donnelley to acquire Consolidated Graphics sent a few shock waves through the industry. What will it mean for the 70+ CGX locations and its more than 5,000 employees?

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About Cary Sherburne

Cary Sherburne is a well-known author, journalist and marketing consultant whose practice is focused on marketing communications strategies for the printing and publishing industries.

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Discussion

By Charles Gehman on Nov 04, 2013

Good story Cary, thank you

I think it's important to note that CGX is in some businesses and product lines that RRD does not offer. Just guessing, but I think CGX is doing more business in the commercial digital area, and in other digital products, than Donnelley.

There are people that know far more about their footprint than I do, but I would guess that there will be market-based consolidation, in the areas primarily in areas where RRD has sheetfed operations.

As to whether or not the President's stick around, well, I guess we'll have to wait until one or two parachute out to get the real story there.

CGX has an outstanding management training program, really unique in the industry, that has generated new Presidents and while I am sure RRD has wonderful management, too, I've never heard of anything like this going on there.

Bottom line, I would say there is a lot of really valuable intellectual property coming into RRD.

 

By Terry Tevis on Nov 05, 2013

Rather than chasing a sunset industry in commercial printing, a move into packaging that has no tablet competition would make more sense. However, volume is volume and the local markets are still healthy (digital print vs. offset) as the CGX model has demonstrated. Both CEO's focused on low cost platforms and best in breed equipment investments. Multiple paid was in line with other good acquisitions. The 70+ CGX local leaders will most likely stay in place driving their respective markets and the 70 local sales teams gain access to RRD 's rich R&D along with a superb long run print platform. RRD gains better access to local markets. Now it is simply a matter of execution.

 

By John J. Conley on Nov 07, 2013

Nice comment Terry and I agree. Lots of locations and a substantial number of new clients in regional markets. If you are working toward creating a large distributed print network this really helps since most of the large Centralized Big Iron plants are not well suited to the task.
One interesting item to note is that RRD will now acquire a number of HP Inkjet presses. They will also be picking up 250+ digital presses including 140 large production cut sheet presses. The new company will easily be the largest digital Printer in the world which last time I checked was a growth market.
It is a complex deal with lots of potential. This may be an occasion for all of us to sit back, observe, do some real homework, and learn. The outcome might surprise us all which to my mind would be good for the industry.

 

By Paul Gardner on Nov 08, 2013

Chuck,
I LOVE your take about the value of the CGX management training process. Little else matters without good leadership.

John,
This is something that is too seldom practiced, "...sit back, observe, do some real homework, and learn." I for one will be taking your advice!

 

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