In the biggest news of the year the country’s number two and number three printers IPMG and Blue Star are merging to create Australia’s biggest print group.
The two companies have entered into a heads of agreement to merge their printing operations by May 30, in a deal that will bring together senior management from both businesses.
The deal will result in the new entity taking top spot from PMP in the Australian print pecking order, with the new company having a battery of print equipment along the eastern seaboard.
It continues the consolidation momentum that is now well underway at all levels of the domestic print industry, which is seeing of all sizes printers team up in all kinds of relationships.
It also highlights the pressures on Australian printers, including those at the top. IPMG is the most profitable business in print, and has been for many years. A year ago the Hannan family owned business opened a new $130m supersite in Warwick Farm. It has just sold its old Alexandria business park for more than $300m. Just two years ago Caxton Web, Blue Star and Geon were operating as three separate but ailing entities before Selig and his backers snapped them up one after the other to create the new Blue Star.
Blue Star managing director Geoff Selig says the merger is a ‘wonderful opportunity’ to bring together two outstanding businesses.
He says, “Both companies have been built over decades on extremely high levels of customer service, responsiveness and exceptional quality.”
“I feel strongly that our compelling value proposition will serve our customers and people very well.”
IPMG executive chairman Michael Hannan says the family is genuinely excited to be affiliating its printing operations with Blue Star.
He says, “Both Blue Star and IPMG are financially strong companies with minimal debt, focused on providing our customers with exceptional quality of service and integrity.”
“This will lead meaningful industry consolidation which will benefit both the industry in general and our customers.”
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