The CAPS Group acquired some operations of digital imaging graphics services provider Schawk Inc., including its catalog and premedia interests, for $29 million in cash plus assumed liabilities, CAPS said yesterday.
The deal closed last week and includes Des Plaines, IL-based Schawk's educational product development, catalog, publication and New York-based advertising premedia operations, which have combined annual revenue around $62 million.
The purchase makes The CAPS Group, Chicago, one of the country's largest independent graphic arts services providers, with revenue around $80 million and more than 500 employees nationwide.
“This acquisition will allow us to offer our customers services for every stage of the graphic arts production process,” The CAPS Group chairman John Reilly said in a statement. The company can cross-sell more diverse products and services including catalog design and execution as well as complete magazine publishing and advertising management.
“In addition, our new presence in New York will enable us to better serve our clients there and strengthen our position among New York's heavy concentration of advertising agencies and publishers,” he added.
The acquired operations have facilities in New York, Illinois, Florida and Wisconsin. The New York-based operation, which provides creative retouching, digital imaging, content management and workflow management solutions for ad agencies and publishers, along with entertainment and luxury goods clients, will be called HudsonYards. Its clients include Grey Worldwide, JWT, Lancome, Martha Stewart Living Omnimedia Inc., The McGraw-Hill Companies, Newsweek and Ogilvy.
Diane Romano, who was president of the New York-based operation under Schawk, joins The CAPS Group as president and chief operating officer of HudsonYards.
The group of facilities in Crystal Lake, Evanston and Pontiac, IL, Orlando, FL, and Racine, WI, known as Black Dot Group prior to being acquired by Schawk, again will operate under the Black Dot Group brand. Black Dot Group provides creative, design, photography and content development to clients in the catalog, direct mail, educational textbook publishing, publications/directories and retail markets.
Jerry H. Byrd Sr., who served as group president for this operation under Schawk, joins The CAPS Group as president and chief operating officer and will continue to lead Black Dot Group.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters