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CMM and Dsi seek further growth after merger

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Direct Solutions International (Dsi) and Corporate Mailing Matters (CMM) are looking for further growth after merging to create the UKs biggest direct mail print force.

The newly formed Dsi CMM Group has a combined turnover of around £80m, pushing it just ahead of Communisis in the UK’s direct mail league table.

Yolanda Noble, the former chief executive of CMM, will retain the top role in the expanded group, while Mark Felstead, who was chief executive of Dsi Group, will become executive chairman.

Noble said: “We are going to be much more aggressive, because we are now on a scale that secures our future. However, we aren’t going to stop there and we plan to grow organically and through acquisition.”

Andy Young, formerly Dsi group managing director, has been appointed group managing director. Alastair Maclean, who was group operations director for CMM, retains the role in the enlarged group.

Young said: “We are going to take on companies that see print as a commodity. We have the scale to tackle those firms head on.”

The group plans to move its main operations into a single site, probably in London, according to Noble. Dsi’s main site is in Rainham, Essex, while CMM’s principal facility is in London and it runs a second in Peterborough.

The group, which will have a workforce of almost 1,000, will count more than 90 of the FTSE 100 companies among its clients.

Others in the industry saw the merger as a positive step for the companies. 4DM sales and marketing director Robin Skinner added: “The two companies have decided that each business complements the other. In this industry, strong groups will remain in a strong position.”

A rival direct mail printer added: “They will have around 5% of the market, which shows how fragmented DM is. It will be interesting to see if they now go for more acquisitions.”

Dsi CMM Group plans to offer an innovative range of services alongside traditional print and mail, which will include all aspects of financial, regulatory and corporate mailing and full service direct marketing.
DIRECT MAIL'S TOP FIVE BY SALES
1 Dsi CMM Group £80m
2 Communisis £76.8m
3 Howard Hunt Direct £43.8m
4 Howitt £40.2m
5 TPF Direct £37m
Source: PrintWeek Direct Mail League Table, 7 December 2006
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