3D eyewear firm buys printing partner
Bringing vendor in-house to open up new product lines
A Bartlett manufacturer of 3D eyewear has acquired its commercial printing partner in a move that will expand the business of both companies.
John Jerit, president of American Paper Optics LLC, called the purchase of Jaco Bryant Printers in Memphis a “no-brainer,” saying that bringing a printer in-house will enable his company to offer new 3D-related products and bring new sales energy to the printer.
“They have been my printer for 20 years,” said Jerit, who founded American Paper 23 years ago. “Essentially we give them our paper board and files and they put the ink on it. It’s been a perfect relationship. The synergy is a no-brainer. We’re their biggest customer.”
The Bartlett firms ships three-diminensial glasses worldwide. The 3D eyewear is worn by people viewing movies in theaters and on DVDs and Blu-ray. It is also incorporated into direct mailers, magazine ads, games, puzzles and outdoor lights. Exports account for 40 percent of sales.
Paper 3D glasses each sell for 15 cents to 40 cents. High demand for the eyewear boosts profits. American Paper has shipped about 2 billion items of 3D eyewear over the years. Hollywood is a big driver. The 50 top 3D films grossed more than $8 billion by 2011, according to market researcher Box Office Mojo.
Jerit began exploring the possibility of an acquisition last year when Sam Lencke, one of Jaco Bryant’s three owners, announced his retirement. A letter of intent was signed in November and the deal closed in early March.
Jaco Bryant employs 26 at a 30,000-square-foot plant in the Hickory Hill area. The commercial printer mostly supplies advertising agencies and corporate clients.
American Paper employs one worker in Denver and 33 in a 27,500-square-foot facility in Bartlett’s Wolfchase area. Jerit sold most of his ownership to a private equity firm in 2007, but bought it back, becoming the sole owner again in August 2012.
The 3D business has gone through numerous spurts and dips over the past several decades, but Jerit sees the industry stabilizing.
American Paper profited from massive one-time orders like 130 million pieces of optical film for McDonald’s happy meal toys in 2007, 134 million pairs of glasses ordered for the 2009 Super Bowl, and an equallylarge order for the 2010 Michael Jackson tribute show.
But the prominence of 3D movies is evening out the market.
“(3D) is not going away again,” Jerit said. “The difference now is that it’s a little less novel. Now you see 3D at most movie theaters. Before the only place you could see good quality 3D cinema was in a theme park or an Imax. Now it’s in every cinema in the world.”
But in the past, American turned down requests for 3D posters and other printed materials because they would have had to pay a commercial printer like Jaco Bryant to cut the paper. American cuts its printed 3D glasses in-house.
“(Jaco Bryant) adds more capabilities to us than we do to them,” Jerit said. “We’ll be able to sell more print that goes along with our glasses.”
Now Jerit said the company will be able to open up to other products and new innovations including a 3D placard called Eye Play that does not require 3D glasses. Eye Play uses perspective and shadowing to create an optical illusion of movement.
Jerit plans to print them as novelty in-store advertising and acquire sports licensing for team memorabilia. Smaller, foldable versions on thinner stock may be sold as sports schedules, direct mailers or greeting cards.
“We use 3D as a tool to make things look unique,” Jerit said.
Other businesses acquired in the past include a competing 3D company in Denver and a technology company in Atlanta.
For now, Jerit said operations and staff at Jaco Bryant will remain the same and the company will keep its name.