New Era Of Consolidation

Growth By Absorption

Harris DeWese, chairman of Compass Capital Partners, which offers M&A advisory services to the commercial printing industry, sees printers that have experienced a "plateauing" of sales and are seeking to "grow externally by absorbing smaller, weaker competitors."

DeWese also expects M&A action to increase in the second half of 2002: "Most of the activity will be taking place in the commercial printing segment, labels and direct mail, with some of the bigger buyers announcing one or two big deals," DeWese says. "Moore is already back with a big acquisition. The publicity associated with the bigger deals helps fuel smaller deals."