Quad Graphics (second from the left on the above chart, courtesy of RRD's 2013 investor presentation) is acquiring Brown Printing, which is part of the most right column, representing Bertelmann's US activities.
We will see if this is only an exit from the consolidating US catalog and magazine market for Bertelsmann or whether there are greener pastures elsewhere for the Arvato book business as well. In any case, it is probably not good news for equipment makers if one can buy three plants full of well maintained production equipment for $100 million.
The press release talks about an "adjusted EBITDA after anticipated synergies"-multiple of less than four, let's say $25 million plus. That probably means the three substantial factories with their over 1,800 employees generate quite a bit less than that today, which tells us something about the continuing price pressure in the industry.
We will see if this is only an exit from the consolidating US catalog and magazine market for Bertelsmann or whether there are greener pastures elsewhere for the Arvato book business as well. In any case, it is probably not good news for equipment makers if one can buy three plants full of well maintained production equipment for $100 million.
The press release talks about an "adjusted EBITDA after anticipated synergies"-multiple of less than four, let's say $25 million plus. That probably means the three substantial factories with their over 1,800 employees generate quite a bit less than that today, which tells us something about the continuing price pressure in the industry.
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