Lakeside Book Company has agreed to acquire Phoenix Color Corp. from ALJ Regional Holdings for $134.8 million. In an unusual twist, the purchase price will decrease by $1 million if the deal is not concluded by April 15, 2022—and if the closing date falls after May 15, 2022, the purchase price will decrease by an additional $1 million.
Based in Hagerstown, Md., Phoenix is a specialty printer of book components, children's books, and other print-related products, with printing facilities in Indiana and Maryland. Sales in the fiscal year ended September 30, 2021, were $115.6 million, up 12% from fiscal 2020.
"We know Phoenix well as a recognized leader in book components. Adding their team's capabilities to Lakeside's service offerings will enable our publishing customers to conveniently manage book and cover printing in one place," said Dave McCree, Lakeside's CEO in a statement. "We are always looking for ways to make the printing supply chain more efficient for publishers and this transaction would be a significant step in that direction."
Lakeside is the book division of LSC Communications, the giant printer that was acquired in 2020 by Atlas Holdings. The book group was rebranded Lakeside Book Company last year.