For the quarter ended 30 June 2020, Lecta had revenue of €206.6 million versus €345.6 million in the quarter ended 30 June 2019, a decrease of €139.0 million or -40.2%. This decrease was essentially attributable to Covid-19 pandemic: • Lower sales of CWF, Specialties and Purchased Products of €-127.5 million or -39.7%, from €321.2 million in 2Q2019 to €193.7 million in 2Q2020, resulting from lower sales volumes of 124,200 metric tons or -39.8%, 187,700 metric tons in 2Q2020 vs 311,900 metric tons in 2Q2019, and a slight increase in average net sales price of +2.4€/t or +0.2%, 1,032€/t in 2Q2020 vs 1,030€/t in 2Q2019; and • Lower sales of energy of €-11.6 million or -47.2%, from €24.5 million in 2Q2019 to €12.9 million in 2Q2020, resulting from lower sales volumes of 105,400 MWh or -35.8%, 189,000 MWh in 2Q2020 vs 294,400 MWh in 2Q2019, and a decrease in average sales price of -15€/MWh or -18%, 68€/MWh in 2Q2020 vs 83€/MWh in 2Q2019. EBITDA decreased by €24.4 million, or -91.1%, from €26.8 million in 2Q2019 to €2.4 million in 2Q2020. This decrease was the result of lower sales of paper in volume, partly offset by higher margin on variable costs and lower fixed costs.
Sole Source Capital LLC, an industrial-focused private equity firm, announced today that its portfolio company, I.D. Images (“IDI”), a premier provider of product identification solutions, has made three significant acquisitions over the past five months. IDI’s acquisitions of Digital Printing Concepts, Multi-Action Communications, and Valley Forge Tape & Label Company have more than doubled the size of the company and extended its reach to several new markets across the U.S. and Canada since it became a Sole Source Capital portfolio company in August 2021. Terms of the transactions were not disclosed.
IDI manufactures high-quality durable and graphic intensive labels that address a broad range of product identification needs for a variety of end markets. Digital Printing Concepts, founded in 2003 and based in East Providence, RI, is a manufacturer of custom durable variable data labels that are utilized in warehouse logistics. Headquartered in Quebec, Canada, Multi-Action Communications is a manufacturer of logistics, grocery, track-and-trace, and prime labels to customers throughout Canada and the United States. The company was founded in 1993 and operates out of three manufacturing facilities across Canada. Based in Exton, PA and founded in 1962, Valley Forge Tape & Label Company is a longstanding, full-service manufacturer of custom printed self-adhesive labels for the Food and Beverage, Healthcare, and Consumer Products industries.
IDI now has 14 manufacturing and distribution locations across the U.S. and Canada, including its headquarters in Brunswick, OH. The combined businesses will yield significant technological and operational synergies as well as deliver enhanced cross-selling opportunities to a broader set of clients. Digital Printing Concepts will increase IDI’s custom track-and-trace label product mix, Multi-Action will further increase IDI’s food and beverage customer base and add three Canadian facilities, and Valley Forge will further enhance IDI’s custom-printed pressure sensitive label capabilities.
“Sole Source Capital and IDI are excited to partner with Digital Printing Concepts, Multi-Action Communications and Valley Forge Tape & Label,” said David Fredston, Founder and CEO of Sole Source Capital. “All three companies have a strong heritage within the labels industry, and we are pleased with the growth we’ve achieved in a few short months.”
“We believe that Sole Source Capital’s M&A and operating expertise, alongside IDI’s skilled operators will propel Digital Printing Concepts, Multi-Action Communications and Valley Forge to new heights,” said Scott Sussman, Partner and CIO of Sole Source Capital. “Sole Source Capital is excited to continue seeking out new partnerships in the labels space as we scale the IDI platform.”
“We are honored to continue the outstanding service, value, quality and expertise of Digital Printing Concepts, Multi-Action Communications and Valley Forge Tape & Label, and share the same high level of commitment to our now combined employees, customers and vendors,” added Jeff Fielkow, CEO of I.D. Images. “We are able to serve our customers out of 14 production locations and can offer a broader range of decorative, industrial, and grocery labeling solutions, which will add substantial value to our combined customer base.”