Consolidated Graphics to Acquire Kelmscott Communications
Press release from the issuing company
HOUSTON, Jan. 26 -- Consolidated Graphics, Inc. today announced it has signed a definitive purchase agreement to acquire Kelmscott Communications LLC, a privately-held provider of commercial printing services in five Midwest and West Coast states with annual sales of $100 million.
Kelmscott's services include state-of-the-art web, sheetfed and digital printing capabilities, a wide range of bindery and finishing options, and complementary warehousing, fulfillment and on-line print procurement tools. Their impressive customer base is composed of many of the leading companies in their operating regions. The Kelmscott companies have a long history of printing industry leadership under well-known and established names in the markets they serve and consist of Anderson Printing in Hollywood, CA; CDS Publications in Medford, OR; Maximum Graphics in Minneapolis, MN; Orange County Printing in Irvine, CA; Printing Control Graphics in Seattle, WA; Spangler Graphics in Kansas City, KS; and Watermark Graphics in San Francisco, CA.
Consolidated Graphics will use available capacity under its revolving credit facility to complete the transaction, which is expected to be immediately accretive to its earnings. Other terms of the transaction were not disclosed. Completion of the transaction, which is subject to certain conditions and the approvals of the Boards of Consolidated Graphics and Kelmscott, is expected to occur in March 2005.
"I am very pleased that the Kelmscott companies will become a part of our organization. Their breadth of capabilities and outstanding reputation for customer service will complement our existing operations and further expand our national footprint and scope of services," commented Joe R. Davis, Chairman and Chief Executive Officer of Consolidated Graphics. "We welcome the dedicated Kelmscott employees to our team and look forward to working with them and their outstanding group of customers."
Also commenting on the announcement, James D. McBride, Chief Executive Officer of Kelmscott Communications LLC (http://www.kelmscottconnected.com ), stated, "Kelmscott's emphasis on local customer service backed by multiple facilities and sophisticated on-line tools and services that go beyond ink on paper closely parallels Consolidated Graphics' high-service approach to the commercial print market. Combining the outstanding qualities of the Kelmscott companies with the considerable financial and operational resources of Consolidated Graphics provides an excellent platform from which to advance the growth and success of the seven companies that make up Kelmscott, and importantly Kelmscott's customers and employees."
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