A great amount can be learned by following the publicly traded companies in the printing industry…and, more specifically, the label segment. Our firm has been tracking news from all the public companies, including earnings reports, acquisitions, product offerings, executive changes, etc. since January 2000.  

Those PrintStockWatch companies have been more involved than others in the label industry, which include Avery, Brady, CCL, Ennis, LINTEC, SATO, Transcontinental and Zebra.

Some M&A news from these companies

Brady Corp.

On August 1, 2024, Brady Corporation (NYSE: BRC) acquired Gravotech Holding, a leader in laser and mechanical engraving solutions, in a transaction valued at $130 million. The deal expands Brady’s portfolio into precision direct part marking, complementing its expertise in product identification and specialty adhesives. Now Brady can provide permanent identification solutions to industries where permanent identification is critical such as serial numbers on engines and aerospace parts.  

Gravotech is expected to contribute $125 million in sales and $13 million in EBITDA in fiscal 2025, excluding integration costs. Brady will leverage its global footprint to extend Gravotech’s market reach.

CCL Industries

In June 2024, CCL Industries Inc. (CCL-B.TO) completed the acquisition of the remaining 50% interest in its Middle East joint venture, Pacman-CCL (PCCL), from Albwardy Investment LLC for $105 million in an all-cash, debt-free transaction. Headquartered in Dubai, PCCL operates label production facilities in Oman, Egypt, Saudi Arabia, and Pakistan. PCCL’s results are now fully consolidated into CCL’s operations under the CCL Label segment, strengthening the company’s footprint in the fast-growing Middle East. 

     According to CCL’s Q3 2024 earnings report, Pacman has now generated $24 million in revenue and $4.2 million in net earnings between its acquisition and the end of September 2024, surpassing expectations. This is their fifth label related acquisition in less than two years. The following were the past four (and recent) label related acquisitions:

1. In July 2023, the company acquired privately owned Faubel & Co. Nachfolger GmbH (Faubel), headquartered in Melsungen, Germany, for approximately $124 million, net of cash acquired. Faubel is a specialist in labels for pharmaceutical clinical trials globally and is reported within CCL Label’s Healthcare and Specialty business. 
2. In July 2023, the company acquired privately owned Creaprint S.L. (Creaprint), which is based in Alicante, Spain, for approximately $27.7 million, net of cash and debt acquired. Creaprint is a specialized producer of in-mold labels and has been added to CCL Label’s Food & Beverage business. 
3. In July 2023, the company also acquired Pouch Partners S.r.l., (Pouch), a subsidiary of Swiss headquartered Capri-Sun Group, based in Milan, Italy, for approximately $29.1 million, net of cash acquired. This business trades as CCL Specialty Pouches and has become an integral new product offering within CCL Label’s Food & Beverage business.
4. In April 2023, the company acquired privately owned eAgile Inc. (eAgile), based in Grand Rapids, MI, USA, for approximately $38 million, net of cash acquired. eAgile is a startup technology company with proprietary, patented hardware and software solutions for the healthcare industry alongside RFID inlays embedded into labels. This business has been integrated into CCL Label’s Healthcare & Specialty business.

Ennis

On June 25, 2024, Ennis, Inc. (NYSE: EBF) acquired Printing Technologies, Inc. (PTI), an Indianapolis-based manufacturer of specialty labels and small paper rolls involving innovative media solutions for various printing technologies such as direct thermal, thermal transfer, and inkjet. This is part of Ennis’ strategy to expand its offerings as some of its other product lines face increasing competition due to customers exploring alternatives. In the Q3 FY2024 earnings report, Keith Walters, chairman of Ennis, stated PTI added $3.3 million in revenue and $0.02 in diluted EPS for the 3rd quarter of FY2024. 

The PrintStockWatch is published twice per month on the Friday closest to the 15th and the Monday following the last trading day of the month. It is a free subscription. If you go to the PrintStockWatch website (www.printstockwatch.com), you can subscribe.

Jim Anderson is the Founder & President of Scottsdale, AZ-based Corporate Development Associates (CDA). CDA is a boutique Merger & Acquisition consulting firm that has focused 100% on the printing industry since 1987. Website: www.printmergers.com. Contact Jim via email: [email protected] or cell/text: 602-432-0426