The deal was completed last Friday (9 October), after being paused briefly as a result of lockdown earlier this year. Despite the current environment, KPM Group founder and chief executive Nigel Copp said now was the right time to push ahead with the deal.
“It’s long been our intention to expand, and growth through acquisition is a key strategy in our five-year plan. Adding TMB Mailing to the group is a great fit and enables us to expand our current service offering and gain greater stability in uncertain times through consolidation.
“Mail’s reach and effectiveness continues to be demonstrated, so as we exit lockdown and businesses get back on track this will prove a great addition.”
He told Printweek the group had been looking for opportunities for a while, but “it was just about coming up with the right opportunity”.
“We tried to look at businesses within a certain distance of us that matched the criteria. We have been looking for quite some time and thought that acquisition was the way to go to expand the business and sales.”
The lease on KPM's circa-830sqm premises in Swanley is coming to an end in December and its 24 employees will be relocating over the next few weeks to TMB's 2,044sqm leased site in Borough Green, around 20 minutes drive away, joining the 25 staff there to make a combined group of just under 50 people.
KPM handles corporate finance and local authority work, with a turnover of £3.5m prior to the acquisition. As well as its mail division, which is headed up by KPM Group managing director Marian Lively, the group has a publishing division, KPM Media, which is overseen by Copp.
TMB's turnover of around £2.5m comes from clients in sectors including publishing and pensions.
“They haven't got any huge clients, so it's a better mix for us. We've got some very big clients so it's good to de-risk the business by putting the two together,” said Copp.
He added TMB's branding and identity will remain as it is for the time being, although eventually it will be branded as part of the group.
TMB managing director Mark Falconer will remain with the group in a more commercial role, working between sales and production.
Copp said the business will also invest to update its equipment portfolio in the new year to boost its capacity. It currently operates Xerox Versant printers while TMB also runs Xerox machinery.
Lively said the synergy between the two businesses was a key consideration in making the acquisition.
“As a business TMB are very similar to KPM having the same core strengths and values – a loyal client base, strong focus on service and an experienced team. This will enable us to continue to offer our group clients fast, efficient print and mailing solutions, while adding extra capacity to the mix.
“In addition, we will roll out the TMB services of international postage consolidation, polywrap and pick and pack fulfilment to all group clients. The merged company will have revenue in excess of £6m so will be able to share the benefits of more efficient group buying and merged production operations.”
Copp added the business is looking to continue its expansion plans “and hopes to do another one or two acquisitions within the next 18 months”.
