Shrewsbury-based Creative Digital Printing appointed Martin Williamson of Insolvency Practitioners Direct as administrator on 20 March.
CDPS was incorporated on 13 December 2016 but started trading from late March. Former Creative Digital Printing director Ian Relf is now working as chief technology officer of KJB on a part-time basis, while its former sales director Chris Henderson has moved to newco CDPS. CDPS’ other director is Lisa Simmonds, who is also KJB managing director.
Egerton said that although the deal to take on Creative Digital Printing's assets was not officially a pre-pack, the two were in discussions before it went into administration. Ninety-five percent of Creative Digital Printing's creditors have been resolved, according to Egerton.
“We saw the opportunity for a merger and we’ve basically used it to move into the large-format arena,” said Egerton.
“It was really driven from the synergies between the people, the professional capabilities and the fact KJB was in investment mode to grow the KJB business, hence the opportunity. We wanted to move into the large-format arena and CDPS offered that solution."
CDPS is based in a 930sqm premises in Cannock, Staffordshire, around a five-minute drive from KJB’s premises in the town, and is 50% larger than the previous site of Creative Digital Printing. A number of Creative Digital Printing's former staff have TUPEd across, leaving CDPS with 10 full-time staff, although some chose not to move.
Since it began trading, CDPS has installed a Canon Océ Arizona 460 GT large-format printer, along with a Dyss X7-1624C digital cutter, both in early April. It is also running Creative Digital Printing's former equipment, which PrintWeek understands includes some Ricoh devices and large-format lamination capability.
“The Canon has been absolutely amazing,” added Egerton, who also praised the Dyss for its multiple tools and Casemaker software.
“It prints on anything from thick window graphics, Metamark products, floor graphics and a range of vinyls and boards.”
He added that the Canon had allowed CDPS to quickly move into branded marketing materials, including USBs and folders.
KJB wants to remain on the M&A trail and is now in the early stages of acquisition negotiatons with another print firm that it hopes to complete within the next 12 months. Egerton said the business is also looking to acquire another smaller company over the same period, with both businesses turning over between £200,000 and £1m, he said.
26-staff KJB will be coming to market with an as-yet-unnamed new product in Q3 2017, an anti-bacterial coating intended for use for paper-based correspondence in hospitals.
“We see it as having a massive application in the NHS and health sector,” said Egerton.
“Hospital-acquired infections cost on average £9,500 per case to treat. We can produce this protection for single digit percentage increases on normal print.”
The £2.2m-turnover outfit runs litho and digital equipment, including a 2016-purchased Duplo iSaddle System and two Ricoh Pro digital printers.
