Lorimier owner Peter Johnston told ProPrint that he had bought Gumming & Varnishing Services (G&V) because the shrinking market made it essential to diversify.
The firm, which is based in the suburb of Heidelberg West and has traditionally specialised in foil stamping and embossing, first branched out 18 months ago into spot UV varnishing and laminating, according to Johnston.
The acquisition has added new revenue streams in strip gumming, stencil gluing, heat seal and shrink pack varnishing, he added.
Johnston said although expanding in a shrinking market was difficult, it also provided opportunities “that mightn’t otherwise arise”.
“The other risk is to do nothing and potentially no longer have a business,” he said.
“It could be said to be risky and obviously it is, whether you’re buying a machine or a business.
“At least with buying a business you get an established customer base and having looked at the numbers, you have a reasonable idea of how much money it’s bringing in.”
G&V owner John Deans told ProPrint he had taken over the business from his father 40 years ago – a decade after his father had bought it.
“We’ve most probably done work for every printer in Victoria,” he said.
John and his son, Chance, ran the production, while John’s wife, Lynette, did the books.
Johnston said he had had employed Chance to operate the three machines he had acquired from G&V – a laminator, gummer and varnisher.
He wouldn’t reveal how much he had paid for the business or how many customers he had inherited.
“It’s a good mix of Lorimier customers and some new customers we haven’t dealt with before so it does broaden our customer base,” he said.
Johnston said G&V had been his only acquisition since buying Lorimier in 2007. He said he expected to pay off the debt in two or three years and had no plans for further expansion.
Deans, 61, said he had been trying to sell G&V for two years so he and his wife could retire. They plan to lease out the premises.
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