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Author: Gurdjeppo Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25  
Subject: Questions about the QuickPak sale to NFI Date: 6/20/2007 6:49 PM
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Just to start some discussion on the issue...Any body have any thoughts on Multi-color selling it's packaging unit to NFI announced on Monday?


Link: http://biz.yahoo.com/prnews/070618/clm016.html?.v=86


-Benefits of focus on labels and 19.1 million more for more acquisitions as Gerace says in the press release?

-Loss of some ability to provide multiple solutions for customers?

-Reading through their last 10-K I see that Quick-Pak hired largely temporary employees. Is it easier/ more liquid to sell a division with mojority temps (does it minimize personnel liabilities for buyer-NFI)?

-How do we determine if we're getting a good price/assess QP's value to NFI?

-Does anyone have any knowledge of the likely quality of the "...joint marketing agreement..." and "...cross-selling..." mentioned in the press release?





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Author: therye Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 16 of 25
Subject: Re: Questions about the QuickPak sale to NFI Date: 8/31/2007 12:43 AM
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I know that this is a little late for a response, but better late than never. Here is how I see the quick pak deal. They only paid 6.5 million for the quick pak unit, plus another couple mil to double its operations. So we will say 9 million paid for quick pak. QP provided 18 mil in operating profits, and they sold it for 19.5 mil. The quick pak unit was much less stable than the label buisness, because it was heavily reliant on promotions. The quarter they just released QP actually had an operating loss.

I am very bullish about the position that this company is in. Private equity is drying up, and LABL has the best credit it has ever had and is debt free for the first time in a minute. Not to mention most 19 million from qp will be used for organic growth. Just effectivly raised the dividend by 50%, when they announced the split.

The earnings multiple on this stock is artificaly high because of nearly 4 million in charges that they took in backing out of an acquisition.



Look for improved margins and sales if Miller decides to go with peal away lables.

http://www.bizjournals.com/cincinnati/stories/2007/08/13/daily44.html?ana=from_rss

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