BIC Graphic Acquires Norwood
June 19, 2009
In a deal involving two of the largest industry suppliers, BIC Graphic USA (asi/40480) has announced it will acquire Norwood Promotional Products. To complete the sale, BIC will pay $125 million plus approximately $37.5 million in assumed liabilities. "The management expertise and strategic combination of BIC Graphic and Norwood will give us the opportunity to lead the growth of the industry," said BIC Group CEO Mario Guevara, in a statement.
BIC outbid the presumed purchase front-runner, Aurora Resurgence, which had made an initial offer to buy the Indiana-based supplier six weeks ago. Norwood filed for Chapter 11 bankruptcy protection in May, maintaining that its debt could not be restructured. "I have had many years of experience with BIC and I am pleased to have them as our partner for the long-term," said Paul Lage, Norwood president and CEO. "We intend to set a new standard for quality, service, safety and the ease of doing business."
For 2008, Norwood reported North American ad specialty sales of $314 million, while BIC reported North American ad specialty revenues of $191 million. With the deal, BIC will become the largest supplier, based on revenue, in the ad specialty industry.
For more details on this acquisition, see Tuesday's Counselor Promogram.