CLAY — The management of Seaboard Graphics in Clay had been discussing an upgrade to its print shop when it found out that a local company in a similar business was preparing for a change.
“We had heard that Liverpool Litho may be for sale because one of the owners wanted to retire,” says Laurence (Larry) Kuhn, president, CEO, and sole owner of Seaboard Graphics.
He described Liverpool Litho as a “full-service” print shop.
The acquisition discussions with Liverpool Litho’s co-owners, Tom Wallace, Jr. and Ralph Stewart, began last October, says Melinda Kuhn, Seaboard Graphics CFO and Larry Kuhn’s wife.
“They didn’t want to just sell to anyone,” says Melinda Kuhn.
All the principals involved “seemed to be on the same page,” she added.
Both Larry and Melinda Kuhn spoke with CNYBJ in a Jan. 12 interview.
Seaboard Graphics acquired Liverpool Litho of Salina in a transaction that closed Jan. 2.
The Clay firm announced the acquisition in a news release issued Jan. 9. It didn’t disclose any financial terms of the agreement.
In the release, Larry Kuhn said the companies are a “truly perfect match.”
Seaboard Graphics operates in a 13,000-square-foot facility at 7570 Oswego Road in Clay, while Liverpool Litho is located in a 10,000-square-foot building at 400 Old Liverpool Road in Salina.
Both companies own their respective buildings, says Larry Kuhn.
Seaboard Graphics used a loan from M&T Bank to finance its acquisition of Liverpool Litho, according to the Seaboard Graphics CEO.
Attorney Gerald Stack of Hiscock & Barclay LLP provided Seaboard Graphics legal advice during the transaction, says Melinda Kuhn. Peter Freer, a certified public accountant with Firley, Moran, Freer & Eassa of DeWitt, provided accounting services.
In the acquisition, Seaboard Graphics added Liverpool Litho’s eight employees to Seaboard Graphics’ workforce of 23.
Liverpool Litho’s eight employees include both Stewart and Wallace, says Larry Kuhn. Both men will remain with the company during the transition.
Stewart is planning to retire and Wallace will continue focusing his efforts on sales and marketing, says Larry Kuhn.
Liverpool Litho and Seaboard Graphics will continue to conduct business under their current names at their current locations. Liverpool Litho is operating as a Seaboard Graphics company.
Seaboard Graphics services about 450 active clients, and Liverpool Litho has about 300 active clients.
How each benefits
Seaboard Graphics had been outsourcing its bindery services and wanted to upgrade its printing facilities.
Its acquisition of Liverpool Litho provides Seaboard a bindery house, which focuses on die cutting, booklet making, cutting, and shrink wrapping, says Larry Kuhn.
Liverpool Litho also offers updated press technology and a bigger format press that Larry Kuhn believed would take Seaboard’s printing “to the next level.”
At the same time, Seaboard provides Liverpool Litho the capability for screen printing, embroidery, large-format projects (banners, posters, and signage), and product fulfillment.
Seaboard Graphics operates a warehouse at 4575 Buckley Road and uses software that allows the firm to manage peripherals on the Web for its clients.
“We were able to offer a lot of services that Liverpool Litho’s customers were going somewhere else for and now we can offer them [in] one marketing company,” says Larry Kuhn.
He declined to disclose Seaboard’s revenue information, but noted the firm’s sales rose about 10 percent in 2014 compared to the previous year. Kuhn is also projecting his company will generate revenue growth of 10 percent in 2015.