Why M&A Will Remain Prevalent in the Printing Industry

The printing industry is undergoing a significant transformation driven by technological innovation, shifting market demands, and economic pressures. Companies that have embraced these changes and reinvested in themselves are thriving, while those that have resisted are merely surviving. However, one constant remains — in order to succeed, you need to both grow and maximize efficiencies.

Mergers and acquisitions (M&A) in the printing industry have never been more relevant, as they directly support these objectives. The industry saw record-breaking M&A activity in 2021 and 2022, followed by blockbuster deals in 2023 and 2024, with momentum continuing into 2025. As a result, there are now more buyers for printing companies than ever before.

This article explores the key factors driving M&A activity, the strategic imperatives behind consolidation, and why we believe M&A in the printing industry will remain relevant for the long term.

Current Industry Challenges

The printing industry plays a vital role in our economy, employing hundreds of thousands of individuals and generating tens of billions in annual revenue. However, many segments have matured and, as difficult as it is for us to acknowledge, are price commoditized. While there is much enthusiasm, several persistent challenges shape the printing landscape:

• Excess Capacity — Declining print volumes, consolidation among customers, and the rise of e-commerce and digital alternatives have led to excess capacity. Yes, there is still too much iron out there!
• Industry Segregation — The “Haves” versus the “Have Nots” – The Haves are companies that have invested heavily in transitioning into full-service communication firms, and they are thriving. Investments in digital and inkjet technology, customized storefronts, 1:1 capabilities, data analytics, and fulfillment services have created “sticky” customer relationships where price is not the main factor. Meanwhile, the Have Nots have been reluctant to make these investments. They remain primarily focused on traditional offset printing and struggle in a commodity-driven pricing model.
• Rising Costs — Labor, insurance, paper, and utilities continue to squeeze profit margins.
• Intense Competition and Margin Pressure — Print aggregators and a crowded market make profitability increasingly difficult.
• Consolidating Customer Base — There are fewer customers today due to M&A.

Why Fragment Industries Consolidate

The printing industry remains one of the most fragmented industries in the United States, and fragmented industries inevitably consolidate as market forces and operational demands drive companies to seek greater stability and efficiency. One of the primary motivations behind consolidation is the pursuit of economies of scale, as larger organizations can reduce costs, leverage synergies, streamline operations, and enhance profitability by leveraging shared resources.

The pursuit of critical mass is a significant factor influencing consolidation. By acquiring competitors, companies expand their market share, strengthen their purchasing power, and gain leverage with suppliers. Larger firms also benefit from brand recognition and improved customer relationships, helping them stand out.

Access to new markets is also a driving force behind mergers and acquisitions. Many smaller businesses struggle to make the commitment to become a Have. It is costly, and the learning curve is steep. Through consolidation, sellers immediately gain access to these resources, positioning themselves for long-term success.

Addressing excess capacity remains a key consideration in fragmented industries, where too many companies are competing for a limited pool of attractive jobs. Consolidation helps stabilize demand by reducing the number of players in the market, allowing for more strategic resource allocation and improved financial performance.

Ultimately, fragmentation plays a crucial role in shaping industry dynamics. As competitive pressures, financial constraints, and technological advancements continue to influence market conditions, consolidation serves as an essential strategy for businesses looking to remain viable, achieve efficiency, and secure long-term growth and success.

The Impact of Aging Demographics on M&A

With more than half of printing industry owners aged 65 or older, succession planning has become a major driver of consolidation. As aging owners approach retirement, the absence of clear succession plans often leads to acquisition opportunities for larger players seeking expansion. Consolidation provides a practical solution, ensuring operational stability while facilitating leadership transitions.

Technology adoption is another key factor influencing industry consolidation. Many older owners are hesitant to invest heavily in new technologies, especially when the financial commitment is substantial. This reluctance to “double down” can limit growth potential and prevent businesses from transitioning into full-service communication firms. Many owners recognize that holding back on these investments is hindering their companies’ ability to compete effectively, reinforcing the need for M&A as a way to become a Have by joining a firm that has already made these investments.

Industry consolidation will continue to accelerate as older owners retire without clear succession plans. This trend reinforces the push toward consolidation, ensuring stability while enabling businesses to scale efficiently in a rapidly changing market.

Why M&A and Consolidation Are Increasingly Relevant in Print

Industry consolidation remains a primary driver of M&A, fueled by several converging factors:

• Achieving Critical Mass and Efficiency — Larger entities can absorb rising costs, optimize supply chains, and invest in technology, boosting productivity and profitability. By streamlining operations and reducing redundancies, businesses gain economies of scale and resilience against market pressures.
• Access to New Markets and Capabilities — Acquisitions provide rapid geographic expansion, improved product offerings, and entry into high-growth segments such as packaging, inkjet, customized portals, and 1:1 personalized campaigns. Strategic buyers often target firms that have already made significant investments in technology, enabling them to bypass the learning curve and immediately enjoy an existing book of business.
• Succession Planning and Lifecycle Realities — With many industry owners nearing retirement, M&A provides an effective exit strategy while ensuring business continuity.
• An Increasing Number of Buyers — The printing industry’s maturity and fragmentation are attractive to both private equity (PE) and strategic buyers. Printing businesses are viewed as stable, cash-generating enterprises, and are trading at relatively attractive multiples.

Additionally, printers have significant assets, which banks favor, making it easier to secure financing for these transactions.

Looking Ahead: The Future of M&A in the Printing Industry

All major indicators suggest that consolidation will continue shaping the industry’s future. The market remains highly fragmented with excess capacity, leaving room for further consolidation. Economic and technological pressures will persist, making growth and efficiency more important than ever. In the ongoing competition between the Haves and the Have Nots, customers increasingly demand integrated, multichannel solutions, driving buyers to acquire new capabilities through M&A.

PE and strategic buyers continue to view the sector as a prime opportunity for value creation, while banks remain supportive due to the industry’s steady cash flow and asset-rich balance sheets.

M&A will remain a powerful force in the U.S. printing industry for years to come. The need for scale, access to new technologies, and the realities of a maturing market make consolidation not just beneficial — but essential for survival and growth. Industry leaders must navigate these dynamics strategically to ensure long-term success in an evolving marketplace.