Business Management - M&A

A plain truth for our commercial printing clients is that a company’s valuation is directly linked to its investment in technology. We think that investment in technology is just as crucial for producers of labels and packaging, but we wonder if the message is being heard clearly enough.

The exchange of public letters between representatives of HP and Xerox continued last week, with the HP Board of Directors stating Xerox's latest proposal in its attempt to acquire HP significantly undervalues the company. Mark Michelson, editor-in-chief of Printing Impressions shares why the sooner this saga ends, the better it will be for the printing industry.

Xerox Holdings sent a letter to the Board of Directors of HP Inc. and issued a press release Jan. 6, confirming that it has obtained $24 billion in binding financing commitments from Citi, Mizuho, and Bank of America to complete its proposed $33.5 billion cash-and-stock offer to acquire HP Inc.

Activist investor Carl Icahn implored HP shareholders to pressure HP's board to expedite a mutual due diligence process and accept Xerox's $33.5 billion cash-and-stock acquisition offer. And Xerox CEO John Visentin has started meeting with key HP shareholders the week of Dec. 9 to present Xerox's case for the deal.

Central National Gottesman Inc. announced today that its Spicers Paper division will add Kilmer, Wagner & Wise to its packaging portfolio. The acquisition will enhance Spicers’ existing stand-alone packaging business, Premiere Packaging Industries (PPI).

TC Transcontinental announced that it has reached a definitive agreement to sell its paper and woven polypropylene packaging operations to Hood Packaging Corporation for $180 million. Hood Packaging will acquire five operations and buildings from TC Transcontinental, including approximately 415 employees that will transfer to Hood Packaging after the closing of the transaction.

In a public letter issued on November 24, HP rebuked Xerox's threat of a hostile takeover, stating the proposal undervalued HP, along with addressing other concerns. Now, Xerox has responded, stating it still intends to mount a hostile bid attempt, while addressing what it claims to be misleading information in HP's letter.

An “attractive” company is a well-managed company: one whose owner has kept it competitive by making the right decisions about market focus, technical capability, and customer relationships.

Xerox is mulling over a $33 billion cash-and-stock offer to acquire HP Inc., a fellow digital printing equipment and supplies provider with a market value more than three times its own.

Inovar Packaging Group has acquired Flexo-Graphics, its first platform company in the Midwest Region that adds to its existing manufacturing footprint in New England, the Southwest, and the Southeast. The company is executing on a strategic plan for growth, both organically and through acquisitions.