Siebold discuss acquisitions and future roadmap
What is the strategic vision for The Siebold Company with its recent acquisition of Smith Pressroom Products and the North American parts and service operations of Manugraph DGM, and what are the benefits for customers?
There are many synergies between the two companies, Smith and DGM, and in the current market environment they will complement each other very well. We are currently quoting several press upgrade and replacement projects where DGM and Smith will both be providing products and services. The combining of the companies under The Siebold Company umbrella adds scale and stability that customers will see in faster service and more focus on inventory levels of critical parts. The combination of the Siebold service staff with the acquired companies’ existing technicians will create one of the largest service organizations in North America. This should provide our current and future customers with improved response times and less machine down time.
What challenges are you facing with the integration of the newly acquired companies and how will you handle the additional services integration will offer?
We have been fortunate that both DGM and Smith already had great people in place and we were able to retain most of them, which eliminates a lot of the normal challenges. The bankruptcy filing in the DGM transaction added sixty to ninety days to the process, which put stress on our customers who had parts needs while we worked through the court to purchase the business. With court approval now behind us, we are working diligently to supply our DGM customers with the parts and service they need. The Siebold team, including the staffs at the acquired companies, are prepared to efficiently service all customers — and in DGM’s case, we look forward to bringing back the reputation of quality and service that the Lunt family worked so hard and so many years to build.
What are your thoughts on the declining North American new press sales and how will it affect your plans?
The purchase of DGM includes all the intellectual property and equipment parts drawings, so we will certainly offer new products if there is a demand for them. I see the decline of new equipment purchases as an opportunity for increased revenue with printers positioning their older equipment to serve them longer. In addition, The Siebold Company Graphic Arts Division is seeing strong interest in upgrades to existing presses, reconfiguration of existing equipment, and sales of reconditioned pre-owned presses and related equipment. We are also deeply involved in buying and selling equipment, so we can help whether newspapers are looking to exit or to grow the production side of their business.
What trends do you see for newspaper printing facilities in North America?
The consolidation of printing facilities in the newspaper space will continue, and regional plants with increased color capacity and a more experienced workforce will continue to be a key strategy. We plan to be a major player in supporting these facilities through color management training, DGM and Goss parts, service and reconditioned replacement equipment. Through printing equipment upgrades that reduce make-ready and production costs, such as our proprietary Smith spray dampening system with integrated blanket washing, we plan to help newspapers capture additional cold set printing work revenue and profit.
Do you have plans for further acquisitions, and if so, what additional services/products?
The addition of DGM and Smith, and the extremely strong start our Graphic Arts Division has had this year are very exciting for The Siebold Company. We are currently focused on executing our DGM parts and service business plan to take care of our customers, but in the future we will continue exploring synergistic opportunities that would add value to our company and for our customers. The Siebold Company, Inc. 4201 N.W. 124 Ave Coral Springs, FL. 33065 www.siebold.com • Prepress and press color management training
• Smith Pressroom Products
• Installation of new and existing press equipment • Equipment relocation, reconfiguration and refurbishment • Commercial, Single-width and double-width press specialists • Press inspection and maintenance
• Parts and labor for web width changes
• Onsite single and double-width press upgrades
• Press brokering services