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Blueline To Acquire Part Of SunGraphix Business


As first reported yesterday in a Breaking News Alert, Geiger (asi/202900) has agreed to sell a significant portion of its SunGraphix (asi/78279) supplier business to Dominion Blueline Inc. and Rediform Inc. Financial terms of the deal, which is expected to close on March 29, were not released. However, as part of the deal, four SunGraphix employees are transitioning immediately, and Blueline and Rediform will assume production, sales and marketing of SunGraphix's diary and planner products.

"We've known Blueline for a long time through our association with Diary Publishers International," Gene Geiger, CEO of Geiger, told Counselor. "They're a good match for this business. Our pulling out of this market opens the door for them to enter this industry. We'll be moving products, machinery and customer relationships to a company that will carry it all on well."

Blueline, founded in 1917, has offices and manufacturing facilities in Canada, Texas and Mexico. The company manufactures calendars, diaries, business forms and other printed products, and sells them commercially and through retailers across North America. It now looks at this deal as its entry into the promotional products industry.

"SunGraphix diaries and journals fit our production skills and complement our product line nicely," said Harolde Savoy, CEO of Dominion Blueline Inc. and Rediform Inc. "The Blueline/Rediform group is truly excited about entering the promotional market with the acquisition of SunGraphix. We are getting a great group of very experienced people who will form the core of our new division and will have the ability to grow this division for many years to come."

Geiger announced in January that it would be closing its manufacturing and supplier business, in an effort to focus its operations on its distributor business. Last month, it announced that it sold part of its SunGraphix business – including its Sullivan Daily Date collection – to Warwick Publishing Co. (asi/95280). The only piece left of Geiger's manufacturing and printing operation now under its ownership is the production of the promotional version of the Farmers' Almanac, which Geiger says the company is in talks with other companies to sell. "We will soon be fully focused on our distributor business," Geiger told Counselor. "It's sad that we're an American company that won't be manufacturing anymore, but this was best for our company moving forward."

Geiger expects the full transition to Blueline to happen over the next few months, as its machinery and production equipment are transferred to Blueline manufacturing facilities in Canada, Texas and Mexico.

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