Investment firm snaps up major printing business

Precision Colour Printing (PCP) has been sold to an investment firm, with 220 staff transferring to the new group.

Hypax has bought the £36m turnover PCP after it was put up for sale by the Claverley Group in March. Employing 220 staff from its 14-acre site in Telford, PCP reduced its EBITDA loss from just over £1m to £393,073 in 2022.

The former Midland News Association owner appointed BDO to handle the sales process as the Claverley board decided that “manufacturing does not form part of their longer-term strategic plans”.

PCP managing director Nick Evans said that the firm’s performance improved post-Covid-19  and with the challenges of the energy crisis, “now is the right time to seek new investors”.

Hypax managing partners Christian Schmehl and Philipp Sterkel set up operations in Berlin and London last year, with the ambition of taking over middle market businesses with sales of at least €15m (£12.8m) to improve and grow each company. Both managing partners worked in private equity at several companies, including Aurelius.

PCP is Hypax’s first printing industry buy.

In a statement, Telford-based PCP said: “Hypax see a significant opportunity for growth in PCP, through strategic initiatives and continued operational excellence.

“Hypax will also look to take advantage of further acquisition opportunities to strengthen PCP’s position in the current competitive market.”

PCP managing director Nick Evans commented: “Under the new ownership PCP will continue to deliver the quality and service to which our customers are accustomed while investing in the future of the business.”

The printer will maintain a relationship with its former owners as a new long-term contract has been agreed with Claverley’s Kennedy Publishing business as part of the deal.

The terms of the deal were not disclosed.