KC printing plant goes offline, cutting about 50 jobs

Tag : printing plant

Rapid Solutions Group ’s Kansas City plant closed on July 11, eliminating anestimated 50 jobs.
The plant at 4251 Bridger Road in Kansas City provided offsetprinting services, with an emphasis on corporate financialpublications. DST Systems Inc. was the plant’s biggest client.
The facility provided full-service graphics and design services,including direct-marketing packages, brochures and other products.
Denver-based Janus Capital Group Inc. announced its plan to sell Rapid Solutions Group in an Octoberfiling with the Securities and Exchange Company.
“Janus initiated a plan to dispose of RSG as a result ofRSG’s difficulty in growing the business and Janus’desire to focus on its core investment management business,”the company stated.
Janus sold off most of Rapid Solutions Group’s assets in twosales. According to SEC filings, digital printing plants inMelville, N.Y., and Mount Prospect, Ill., sold to Bowne & Co. Inc. in April for $14 million.
Janus spokeswoman Shelley Peterson said offset printing plants inKansas City and Eldorado Hills, Calif., were sold for anundisclosed amount to a separate buyer on June 19. Petersondeclined to identify the buyer, but a letter sent to RapidSolutions Group suppliers and vendors on June 20 stated that EarthColor Inc. bought the offset printing operations and that they would beclosed.
Karen Missud, EarthColor vice president of marketing, said thecompany bought the rights to client business, not buildings andemployees. She said the transaction included rights to work thathas been done for Kansas City-based DST Systems.
Charlie Oppenheimer, CEO of Amvest Investment Bankers in Kansas City, said he’s not surprised that EarthColorwould be interested in Rapid Solutions Group’s clients andnot its other assets.
“The print industry is suffering from overcapacity,”said Oppenheimer, who has done mergers-and-acquisitions workinvolving the printing industry. “Companies don’t wantto inherit more capacity than they already have. So the dream isusually to get the clients and not the buildings and other assets.The problem with that is companies often have debt, and it needs toget paid, so they often end up acquiring the equipment as well andselling it off.”