Toppan Buys Singapore National Printers
by Teri Tan -- Publishers Weekly, 6/11/2008 11:48:00 AM
Toppan Printing Group launched a $152-million takeover for Singapore National Printers (SNP) Tuesday, offering approximately $1.28 per share (about 11% above its closing price). The cash bid has been approved by major SNP shareholder Green Dot Capital, a wholly-owned unit of Singapore state investor Temasek Holdings. With this transaction, the $8.49-billion Tokyo-based company will emerge as one of the world’s largest printing groups, further expanding a portfolio that covers security/card, commercial, publications, packaging and financial printing businesses with operations in Asia, Australia, U.S. and Europe.
SNP, which started as a government printer, embarked on an overseas shopping spree in 1999. Its many acquisitions included Srivatana, Leefung-Asco and Excel United -- three names familiar to international print buyers. Today, Hong Kong-based Excel is known for producing children’s titles and complex pop-ups such as those by Robert Sabuda and Matthew Reinhart; the same expertise is also found at Thailand-based Srivatana. Its China-based Leefung operation meanwhile specializes in commercial/magazine printing and packaging for the domestic market as well as conventional printing of illustrated titles for export.
Rumors of SNP sale and potential buyers have been percolating for weeks, making it a hot topic among Asian printers at BEA and the just-concluded DRUPA fair in Dusseldorf, Germany. Recent challenges faced by Hong Kong/China printing industry—yuan appreciation, rising material and energy costs, the new labor contract law, and tighter credit controls throughout the supply chain—have also provided lots of fodder for speculation. For many, the April liquidation of Hua Yang, one of the biggest printers of complex pop-ups and children’s book is seen as an ominous sign of tough times ahead. But even before that, smaller players such as Best Tri Printing, had already gone out of business due to their inability to adapt to mounting margin pressures and increasing overheads. Now, the industry is busy restructuring, cutting costs and shoring up cash flow. For several players, ramping up their Hong Kong operations instead of competing in China’s tight labor market is the way forward.
More coverage on the industry will be available in the July 28 supplement on printing in Hong Kong.
