Blue Star and IPMG call off merger

The proposed merger between print giants Blue Star and IPMG is off as the logistics of combining the two businesses proved too difficult for the deal to go ahead.

The two leading family owned businesses had planned to join forces to create a print giant with sales approaching $800m, with a heads of agreement signed on March 30.

However in a brief statement they say while ‘the benefits of merging these businesses are significant and that there is a need for meaningful industry rationalisation, the due diligence process, involving more than a dozen working groups set up to examine every part of the businesses, determined ‘the cost to rationalise the businesses and the risks associated with the implementation outweigh the expected benefits’.

Both companies are tightlipped about the specific reasons for the collapse of the deal, with Blue Star CEO Geoff Selig saying only that ‘things don’t always work out’.

Now the two businesses will be rivals once again, albeit with an inner knowledge of each other’s work practices and costing models. Both are in sheetfed and webfed printing with production sites along the east coast.

Since the heads of agreement was signed Blue Star has announced it is acquiring the Australian arm of STI Group for its Australian business – Reg Hammond’s old company – and last week it bought mailing powerhouse IGroup.

 

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