News
'Three printing groups in discussions' over Pindar buyout
Three "printing groups" are understood to be in the running to buy Cooper Clegg, following Tuesday's announcement that Pindar was to sell the magazine printing division it acquired in March 2007.
PrintWeek has learned that Pindar is in early discussions with three "printing groups", with initial enquiries also received from other trade buyers and venture capitalists, although no deal has yet been agreed.
Polestar, BGP and Southernprint have stated that they are not in talks to buy Cooper Clegg. St Ives and Wyndeham were unavailable for comment, although neither are thought likely to be involved.
In a statement, Pindar said that the board believed Cooper Clegg would fit better within an operation with a "larger presence in the publishing market or a publisher looking for a guaranteed supply chain".
Cooper Clegg produces a raft of titles for Bauer Consumer Media (BCM), including FHM, More! and Q, although the ex-Emap operation is currently involved in a tendering process for the bulk of its consumer titles.
Senior industry sources have speculated that BCM's German parent Bauer Verlagsgruppe might be a potential bidder, with a view to mirroring its German publish and print model, although Bauer has declined to comment.
News of the interest came as more details emerged as to the reasons behind the decision to sell the business after just 18 months of ownership, and the group warned of a contraction of choice in the magazine publishing market.
"Printers are not getting the return they need in the sector and [if this continues] the judgement day will arrive when publishing buyers will have zero choice and their prices could be pushed up by maybe 30-40%," said Pindar chairman Andrew Pindar.
According to Pindar, the firm had made cost savings of around £1m per year at Cooper Clegg since buying the web offset operation in March 2007, but rocketing costs and cut-throat pricing meant this had little impact.
"It's not a question of scale or efficiency, we know how to run efficient plants, but there comes a point when the prices are unsustainable," said Pindar.
Barry Hibbert, Polestar chief executive, said: "The position of the Pindar board is totally understandable… the over-supply in the marketplace means that pricing levels are not able to sustain capital investment."
Pindar would not be drawn on the options facing the business if it fails to find a buyer. "We will cross that bridge if we get to it," he said.
However, print union Unite voiced concerns. "We are worried that this may mean closure if they can't sell it," said Steve Sibbald, Unite national officer.
"They have good customers, a good order book, very skilled staff and good equipment. The question is whether or not anyone would want to take it on," he added.
According to its most recent accounts, Cooper Clegg employed 249 staff and in the 18 months to 30 September 2007 recorded sales of £40m with a pre-tax profit of £1.5m, although this included a £4.9m "exceptional item".
Pindar bought Cooper Clegg in March 2007
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Comments
The Mighty wind - 03 October 2008
difficult time for all involved, a number of companies will be "tyre kicking" but with a number of its contracts "under review" it is difficult to see this having a happy ending. However andrew pindar is correct the tipping point for choice/price is fast approaching and it would make a great deal of sense for someone of bauers size to secure production facilities in the UK.
Matthew Parker - 03 October 2008
It is time for those publishers that review their contracts every year to consider longer term agreements. This leads to a more stable and sustainable marketplace and allows both publisher and printer to focus on driving cost out of the process \(N.B. this is completely different to driving down price) to the benefit of both parties.
Matthew Parker
www.printandprocurement.com
Lee Jackson - 03 October 2008
The machinery may not be the latest but it is all paid for and allows us to offer a complete in house solution \(e.g. content & covers, UV varnishing, binding etc..) in many formats. Pindar have done the groundwork on turning Cooper Clegg around clearing many debts, striking new deals with ink companies, fuel suppliers etc... and installing QTMS etc... to make the place more efficient. The staff are dedicated and have done everything asked of them.
The Mighty wind - 04 October 2008
lee
sadly what you have is standard in other companies and in most that have already hit the dust, I hope you make it out of this mess because if you do not other firms who do not deserve too, will reap the benefits.
the PM - 05 October 2008
face facts here Coopers have 32pp costs and at best 64pp revenues. No matter what they do they will be running faster and faster to stand still.
The market has moved away from them - with paper rising and their short cut off presses there may be a small glimmer of hope that sub A4 products may prove popular again.
However, I fear the future is not too bright for C C
Martin Bloomfield - 06 October 2008
Mighty Wind, I would be surprised to see a Publisher with a manufacturing operation, they have enough trouble publishing, although I accept the Germans have done that, indeed historically it was also the case in the UK, but my experience of it wasn't good. Taking Mathews point I agree long term contracts create stability but can also leave a Publisher with a gap to market/technology benefits. The truth is that in the UK Publishers don't typically develop the supply chain on a gainshare basis, benefits come each time the contract is put out to bid, the market behaviour on both sides doesn't encourage collaboration and it's a shame.
lordof weboffset - 06 October 2008
I would be amazed if anyone from within the industry buys Cooper Clegg. Given that statement, and given the fact that Coopers competitors do not want it, let that be a warning to anyone who is thinking of purchasing it, to be very careful.
As has been suggested, I would think that people are just having a look, as people look at accidents on a motorway. All very interesting but very glad your not involved. Can you rubberneck at a printing company?
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