Take a look at our Industry News section and notice what the several label company M&A stories have in common. There’s a consistent thread among the acquisitions for Resource Label Group, Inovar Packaging and Fortis Solutions Group – private equity ownership groups are continuing to ramp up their M&A activity, adding to what already is a company with multiple label manufacturing operations. They are expanding geographically while at the same time entering new label markets.

Look further, and you’ll see more similarities. A testament to the health of our industry, these investment groups have no plans on stopping anytime soon. Take Inovar Packaging, for example. Commenting on its acquisition of Miami-based Topp Labels, Inovar CEO John Atayek says, “We seek label and flexible packaging companies in combination with business owners and management who align with our culture and overall strategy…Further, we are focused on extending Inovar’s reach into other major prime label markets in the Mid-Atlantic, Central and Western regions of the country. Expanding into these key areas will enhance our ability to respond quickly to serve clients of all sizes, including enterprise-class organizations with multiple locations.”

Large companies are looking to get larger. For Resource Label Group (RLG), the addition of Ingenious Packaging – which expands the company’s reach into Canada – is the 11th acquisition since 2011 for its investment groups. If my math is correct, that’s nearly two acquisitions a year. RLG is also showing no signs of slowing down.

Fortis Solutions Group is another M&A newsmaker whose ownership group is making it clear there is more to come, closing its news release with the statement, “The company intends to continue
its pursuit of attractive acquisitions to further its breadth of product offerings and locations, which can serve its customer base.”

It’s fair to say the consolidation trend in the label and flexible packaging industry is here to stay for the time being. I visit a lot label companies all over the US, and many of them are small to mid-sized players. I always ask, and the answer is always the same. “Do you receive a lot inquiries asking if you’re interested in selling?” The answer is always something to the effect of, “All the time.”

The bean counters that oversee these deals making these “groups” of label companies bigger, I wonder if they attend Labelexpo. Of course, it’s that time of year, and as we go to press, show preparation is at a fever pitch. I’m looking forward to this one for a variety of reasons. From each Labelexpo I attend, a distinct theme emerges, and I’m looking forward to seeing what’s in store for the 2018 edition.

For those attending the show, I consider Jack Kenny’s Front Row column in this issue titled “Working the show“ required reading. The author is a veteran of many Labelexpos, and his advice on what to do before, during and after Rosemont is spot on.
See you soon.


Steve Katz, Editor
[email protected]
Twitter: @LabelSteve