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Bankruptcy move by
Norwood ends in a
$125m BIC takeover
American promotional products giant Norwood
has been bought out by BIC Graphic
USA, after the former filed for Chapter 11
bankruptcy proceedings.
Norwood filed for bankruptcy citing an inability
to refinance debt of approximately $200 million.
CEO Paul Lage said: “We couldn’t come to a
consensual arrangement with our lender group.
We needed 100 per cent consent to restructure
the debt and we couldn’t get it.”
The total consideration of the BIC acquisition
is $125 million, plus around $37.5 million in assumed
liabilities.
Scale at heart of crisis, says ASI boss
In the grand scheme of things, what do
you see as the significance of the Norwood
failure
“I certainly wouldn’t call Norwood a ‘failure’. My
understanding is that Norwood had an incredible
amount of debt, built up under a different management
team, that was more than the company
could support.
“If there was a failure, it was one nearly a decade
ago, of people believing that ‘bigger is better’
and that carrying high debt is a good idea.
“In our industry, where innovation and service
are key, many suppliers find that smaller allows for
them to be more nimble.”
Was there something about the company’s
individual situation that went wrong for
them or was this just part of a wider problem
In which case, can we expect to see
others suffer the same fate
“What I believe makes the Norwood case interesting
is that Paul Lage is communicating the
Following the takeover, Lage said: “I have had
many years of experience with BIC and I am
excited about the potential of the new company.”
BIC Group CEO Mario Guevara added: “The
strategic combination of BIC Graphic and Norwood
will give us the opportunity to lead the growth of
the industry.”
PPD spoke to Timothy M Andrews,
president and CEO of the Advertising
Specialty Institute (ASI) about
Norwood’s recent difficulties
developments in a way that’s as transparent as
possible to the rest of the industry.
“Sales in the advertising specialty industry in the
US were down 17 per cent in the first quarter versus
last year. As we continue to track the economic
environment over the next several months, it’s
possible more business combinations, reorganisations
or mergers could occur.”
What does BIC’s acquisition bring to the
table from the buyer’s perspective
“The BIC and Norwood combination will emerge
as the largest supplier, based on revenue, in our industry.
Last year, Norwood reported sales of $314
million, while BIC reported sales of $191 million.
“That said, Norwood about a decade ago was
larger than it is today.”
Jackson’s death puts the skids under campaign
The death of Michael Jackson has derailed a
major marketing campaign by LSi.
At its recent Big Promo Gift Show (see next
page for details), LSi held a draw for two tickets
for one of Jackson’s planned shows at London’s
02 arena.
The company even hired the services of Navi,
dubbed the world’s number one Jackson impersonator,
for its high-profile event.
Following the show, LSi was also offering
customers free entry into a draw to win two more
02 tickets, for every £500 they spent.
That campaign was brought to a grinding halt
with the news of Jackson’s death on June 25.
The company has put up a brief note on its
website announcing that the promotion has been
News
Pavilion and a
co-located event
will make TONS
of difference
Next year’s Trade Only National Show will be
expanded with a new bpma supplier member pavilion
featuring 40 stands.
The company has also announced that Print for
Business and Promotion 2010 will be co-located
in the E.ON Lounge of the Ricoh Arena.
Details of the bpma awards dinner for 2010
have also been announced. The event will take
place on the evening of January 27 and moves to
Ricoh’s brand new Hall 3 on the casino level.
“It’s definitely destination Ricoh in January” said
Gail Kilcoyne, Event Manager for Trade Only. “We
are adding value and content to the show.”
Trade Only’s Exhibition Director Nigel Bailey
said: “We are delighted to be working so closely
with both the bpma and the IPIA again and to have
been able to increase their presence at the Ricoh
Arena this year. The bpma pavilion is going to add
exhibitors, interest and prestige to the event.
“The Print for Business and Promotion show
is designed to add quality footfall to both events
and allow promotional product distributors the opportunity
to add a natural bolt-on to their existing
business at little extra cost, especially beneficial in
the current climate.”
Gill Thorpe, Chair of the bpma, said: “Our pavilion
will allow first-time exhibitors and supplier
newcomers an opportunity to be seen and present
themselves and their products in a cost effective
and simple way.”
Andrew Pearce, Chief Executive of the IPIA, said:
“It makes perfect sense for the two trade shows to
sit side by side. The synergies between the shows
will ensure that the visitors’ precious time out of
the office will be maximised.”
■■The Trade Only National Show has been nominated
in the Best Live Marketing Event category at
the Meetings Industry Marketing Awards (MIMA).
The winner will be announced at a gala evening in
London on October 16. The Trade Only National
Show was also nominated in the Best Trade Show
category for the Association of Event Organisers
(AEO) Excellence Awards.
withdrawn, but managing director Lloyd Simpson
said LSi had not yet made any decision about
offering alternative prizes.
“It’s difficult to know what to do,” Simpson
told PPD. “We don’t want to rush in right away
and offer an alternative prize, as that could seem
heartless.”
He added that an announcement would be
made in due course, but admitted that the blow
had come as a complete shock.
“It’s the biggest marketing campaign we’ve
done.”
Despite the setback, Simpson said the show
had been been a great success, adding that such
events were “the way forward for distributors”.
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