IVE Group To Acquire Franklin Web & AIW Printing for $116m

IVE Group To Acquire Franklin Web & AIW Printing for $116m
SHARE
THIS



ASX-listed diversified print and marketing communications business IVE Group has announced it will acquire Melbourne-based catalogue printers Franklin Web and AIW Printing for $116 million.

IVE said in a statement to shareholders that the acquisitions consolidate its position as Australia’s leading vertically integrated marketing and print communications company, and is based on strong strategic and financial rationale.

“The move into large format web offset (LFWO) catalogue production is a logical and attractive extension for IVE as it continues to broaden its product and service offering, further enhancing its already powerful value proposition to the retail sector,” the statement said.

Founded in 1936 and 2001 respectively, Franklin Web and AIW Printing are considered to be among the leading players in the LFWO sector.

The acquisition will see AIW’s operations at Springvale in Victoria be fully integrated into Franklin’s operations at Sunshine in Victoria, while IVE’s Blue Star DISPLAY business in Victoria will also be integrated with Franklin’s retail display business.

Franklin CEO and owner Phil Taylor has been appointed to lead the combined Franklin operation at Sunshine.

IVE is also expected to invest $18 million for the relocation of equipment and establishment of a catalogue production capability in its Blue Star WEB facility in Sydney and the expansion of its Blue star DISPLAY capability in Victoria.

The acquisitions will be funded by a mix of equity and debt, and are expected to be completed on 13 December 2016. The integration of IVE’s new businesses are set to be completed within 12 months.

IVE’s overall pro-forma revenue and expenses before interest, taxes, depreciation and amortisation for the 2016 fiscal year will be approximately $610 million and $73.7 million respectively once the acquisitions have been completed.

IVE Group executive chairman Geoff Selig said the company’s decision last year to list on the ASX has provided a foundation to pursue meaningful opportunities for its ongoing evolution and diversification, and has continued to grow value for shareholders.

“Like our own family printing business that was founded in 1921, Franklin is a third-generation business founded by Len Taylor in 1936,” Selig said.

“I have known and highly respected Phil Taylor for many years, and strongly believe the coming together of the collective experience, passion and unparalleled capabilities of IVE, Franklin and AIW positions us incredibly well in the market to ensure our customers benefit from access to a unique global offering.”

Taylor said that while it was a highly emotional decision to sell the family business, he feels very comfortable that the shared values and business philosophy of IVE and Franklin will ensure we continue to build on Franklin’s success moving forward.

“I very much look forward to being an integral part of the broader team as we execute on our vision for the business over the years ahead,” he said.

“I have no doubt that our dedicated staff, our suppliers and our customers will benefit greatly from the expanded product and service offering. I will also be pleased at the completion of this transaction to be a significant shareholder in the IVE Group.”

AIW chairman Charles Garrard said industry consolidation in the LFWO sector is long overdue because of the excess capacity.

“Despite strong support from our customers and dedicated staff, for which we are extremely grateful, AIW is not immune to the effects of this overcapacity,” he said.

“We believe that a combined IVE, Franklin and AIW operation will be a robust competitor offering a more diverse value proposition for its valued customers.”

Please login with linkedin to comment

Latest News

Study: Aussie Brands Close The Gap Between Digital Experience & Customer Expectation
  • Marketing

Study: Aussie Brands Close The Gap Between Digital Experience & Customer Expectation

SAP Australia today launched its 2017 Australian Digital Experience Report, revealing that Australian businesses have significantly improved the digital experience they provide, closing the gap to what consumers expect. However, while performance has improved, consumers are still more likely to be unsatisfied with digital experiences than delighted by them.  The report, based on results from […]

Nuttelex Launches First Brand TVC Via Independent The Sanford Partnership
  • Campaigns

Nuttelex Launches First Brand TVC Via Independent The Sanford Partnership

Following a nation-wide qualitative and quantitative research study, independent creative agency The Sanford Partnership has produced a TVC for its client Nuttelex. The TVC has a nostalgic theme with a modern twist and highlights the brand’s healthy credentials. Nuttelex Food Products Pty Ltd started in a small factory in St Kilda in 1932. Now, the family […]

Yarra Trams & Icon Agency Introduce ‘Tram Coach’ For New Passenger Safety Campaign
  • Advertising
  • Campaigns

Yarra Trams & Icon Agency Introduce ‘Tram Coach’ For New Passenger Safety Campaign

Yarra Trams has appointed Icon Agency to deliver a new passenger safety campaign, following a competitive three-way pitch. The campaign aims to reduce the incidence of slips, trips and falls on trams via Melbourne’s latest safety ambassador, ‘Tram Coach’. Commencing today, Tram Coach will be travelling the Yarra Trams network throughout the week. His mission […]

The Red Republic Appoints New General Manager
  • Marketing

The Red Republic Appoints New General Manager

The Red Republic has strengthened its management team with the appointment of Mai Aristoteli (pictured above) as general manager. Aristoteli joins The Red Republic from Talk PR in London, where she has worked for nine years as a board director. The appointment of Aristoteli follows The Red Republic managing director Lynn Mooney’s relocation to head-up […]

PR Deadlines Inks Deal With GlobalCom PR Network
  • Marketing

PR Deadlines Inks Deal With GlobalCom PR Network

Sydney-based agency PR Deadlines has extended its global reach after inking a partnership agreement with the GlobalCom PR Network. The agreement gives PR Deadlines’ clients access to some 70 independent agencies covering all European Union states, as well as 60 more in countries worldwide. In turn, clients of affiliated agencies will have access to PR […]

Fintech Start-up InstaReM Names Aussie Cricketer Matthew Wade As Brand Ambassador
  • Marketing

Fintech Start-up InstaReM Names Aussie Cricketer Matthew Wade As Brand Ambassador

InstaReM, which offers international money transfers to individuals and businesses, has signed on Australian wicketkeeper Matthew Wade as the sports face of the brand. InstaReM lists Australia as its founding market, having begun life here in 2014. Since the company’s modest start in Australia, InstaReM has since successfully spread its wings to other corridors by […]

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?
  • Marketing
  • Opinion

Australia Is Diverse… Does Your Brand Have An Inclusive Digital Presence?

As Australia continues to grow and the population becomes more ethnically diverse, it is important that marketers ensure digital environments are more inclusive, especially for those who don’t speak English as a first language, writes Siteimprove’s Haley Doel (pictured below). Having a readable and accessible website is no longer just a high priority for large […]

Opinion

by B&T Magazine

B&T Magazine
Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign
  • Advertising
  • Campaigns

Pepsi MAX Teams Up With PHD & Time Out For New Data-driven Campaign

Pepsi MAX has partnered with PHD and Time Out to not only inspire Australians, but also enhance their ability to ‘MAX’ out their summer this year. Through the use of a live dynamic data feed, consumers will be served ads by the brand on events taking place around them that are relevant to their personal […]

AI – To Join It Or To Beat It
  • Media
  • Opinion

AI – To Join It Or To Beat It

I'm afraid we can't let you read this piece Dave! That's a joke about A Space Odyssey 2001, young B&T readers.

Opinion

by B&T Magazine

B&T Magazine
AnalogFolk Opens In Shanghai
  • Advertising

AnalogFolk Opens In Shanghai

AnalogFolk has opened in Shanghai and, as B&T's trusty Funk & Wagnalls atlas tell us, is somewhere near Wollongong.