American Reprographics Company (ARC) has completed the acquisition of four companies within the past three months

During one of his recent “earnings calls,” Suri, President & CEO of ARC, indicated that ARC would, once again, be considering acquisitions. He also said that increasing “market share” would be one of ARC’s objectives for 2011.

One way of increasing market share – buy existing competitors in your present markets.

In an e-mail I received, yesterday evening, from Dilo Wijesuriya, Chief Operating Officer of American Reprographics, Dilo indicated that ARC has acquired four companies in the past three months:

CANADA:

MAK Imaging – Toronto, CA

MAK had one location, but MAK has since moved from that location. My guess is that MAK’s business was consolidated with another ARC operation in Toronto.

When I went to visit MAK Imaging’s web-site, I was unable to get re-directed to its new web-site, since I don’t have the necessary “Flash” software on my MAC.

A visit to LinkedIN revealed that Hanako Krimmling is “Director of Operations” at MAK Imaging.

WISCONSIN, USA:

Badger Blueprint – Milwaukee Metro Area

I previously disclosed ARC’s acquisition of Badger in a previous post on this blog. Evidently, both of Badger’s two locations will remain open. I would imagine that means that a previously owned ARC operation in that market will be consolidated into one of Badger’s two locations. One of Badger’s team members will assume the role of “Director of Sales.”

COLORADO, USA:

Denver City Reprographics – Denver, CO

Fairway Reprographics – Colorado Springs, CO

(note: both companies were owned by the same owners, Mike & Diana Jones)

In an article I posted on Repro 101 on January 13, 2011 about ISqFt,, Fairway Repro was listed as one of ISqFt’s “reprographics” print partners. My guess is that Fairway is no longer an ISqFT “print partner”, but, admittedly, I don’t know that for sure.

Fairway and Denver City use the same web-site (this web-site will likely disappear at some point.) Here’s some information about Denver City and Fairway, as per the web-site I visited:

We are a privately owned and operated Reprographic Total Services Provider (RTSP) with over 80 years combined experience. As an RTSP we will assist you throughout the lifecycle of your project from inception, to distribution to completion of archiving materials meanwhile providing ongoing support. In fact, we can also deliver the supplies you need in your day to day operations. We know that you have many choices when it comes to deciding who is going to be your business partner. That is why we are committed to quality service and products. Our service sets us apart.

Dilo did characterize these recent acquisitions as “very small in size.” Certainly this is only my opinion, but I think it is very likely that ARC will make additional acquisitions in 2011. ARC can benefit from acquisitions, no matter whether they are big or small, in two different ways: 1) economies of scale; eliminate duplicate/redundant operations, and newly acquired operations are able to purchase equipment, maintenance and supplies at lower costs, and 2) increase in market share (by adding additional sales, from newly acquired customers and from increasing business with existing customers.) As I pointed out in a previous post, ARC is not required (by SEC Regulations/Rules) to disclose acquisitions that do not meet the definition of “significant”. (If you want to learn those rules, that’ll be up to you.)