Partnering for Profits: Wisconsin Printers Combine To Reduce Costs, Enlarge Sales Potential

Last spring, two Wisconsin printers with a combined total of 66 years in business joined forces. At a time when "the printing industry in general is struggling," this decision by Brookfield-based Heritage Printing and Waukesha-based Graphics Factory made it possible, in the words of Heritage owner Bob Wendt, for both firms "to remain competitive and have a strong business."

Although technically an acquisition rather than a merger, the combining of the two companies was seen by both managements as the best solution to deal with mounting costs and the need to provide additional options for customers and prospects.

Wendt observed, "When I purchased Heritage in 2007, we developed a strategic plan that had acquisition as one of the key strategies. We knew we needed to remain competitive and we wanted to expand the services we provided to our customers by adding a broader range of press capabilities."

Meanwhile, Graphics Factory was faced with a softening in the economy, and its owner was seeking an effective exit strategy that would ensure stability for both its clients and its employees. Merger made the most sense.

According to Wendt, "The synergies created by combining the companies made not only financial sense but gave us the ability to broaden the services provided to all our customers. Heritage now has the ability to provide everything from short-run digital printing to six-color commercial printing and all the ancillary services customers want to manage and distribute material."

He added that most of the Graphics Factory employees accepted positions with Heritage, and that the two locations were folded into one facility.

"This acquisition positions us for continued growth. We expect to top $10 million in sales in the next three years," said Wendt.

Emphasizing that this represents a new chapter in the continuing story for Heritage Printing and Graphics Factory, Wendt noted that both firms evolved out of quick printing. "Heritage was founded in 1972 and the Graphics Factory in 1977. Both were led by the original owners, Terry Tarillion and Mike Wilson respectively, until the past few years."

During the past decade, both companies began to take on a new look. Wendt said, "Heritage started to specialize in short-run full color printing, digital printing, and mailing. The Graphics Factory moved to full commercial printing with the addition of a half-size six-color press in 2004."

After running the Heritage operation as an employee/manager for eight years, Wendt purchased the company in 2007. The acquisition of the Graphics Factory was completed on May 30, 2008. The combined businesses function under the Heritage identity.

"From the beginning the acquisition showed a tremendous amount of potential to create growth and stability," said Wendt. "The two businesses, though similar in culture, had different sets of capabilities. Bringing them together allowed Heritage to meet its customers' needs for higher end commercial printing and Graphics Factory customers' needs for short-run and digital printing, not to mention Heritage's technology applications for Internet order entry, fulfillment, and variable data printing (VDP)."

Moreover, Wendt continued, "We are much better off financially. We have been able to remove almost $500,000 in duplicate overhead, which helps us reduce the cost of providing these services to our customers."

The road to the future looks clear for Heritage, which services clients in a seven-county territory ranging across southeastern Wisconsin and northern Illinois.
"At the moment," said Wendt, "most of our work is being done for major manufacturing, health care and financial organizations. We fully expect the acquisition of Graphics Factory to help us grow organically in these markets. At the same time, we continue to seek additional acquisitions that will enable us to grow our business to even greater heights."