Drummond/RGI Agreement: FAQs

About this Transaction

Q: What is Drummond Press announcing today?
A: On October 1, 2015, Drummond completed a transaction to assume control of the Print Production division of RGI, a leader in providing custom lead, print management and marketing programs. This is Drummond’s second transaction in the Atlanta market, following the purchase of Graphic Communications Corporation in 2012. The investment positions Drummond as the most actively expanding commercial printer in the Atlanta market, and signifies the company’s continued commitment to advancing its print solutions for its growing customer base. The terms of this acquisition are not disclosed.

Q: Who is RGI?
A: Founded in 1985 by Mike Rehg, RGI has become a nationally-recognized, data-driven marketing company with more than 40 team members. Growing his business from a small quick print shop, Mike’s innovative approach to client solutions led to the development of a cutting edge Cost per Lead (CPL) program.

Q: Where is RGI located?
A: The Company is located in Marietta, GA, and serves customers nationwide.

Q: What are the main benefits of this transaction?
A: This deal enhances Drummond’s print solutions offering to customers, and supports the company’s strategic business growth:

  • Benefits for Drummond: Drummond’s core business will be strengthened through:
    • Increased revenue
    • Enhanced technology platform
    • In-sourcing opportunities
    • Cross selling in Atlanta
    • This firmly establishes Drummond as a leader in one of the Southeast’s largest print markets.
  • Benefits for Our Customers:
    • Premier digital printing presses that offer the same rich color images with more economical options for customized short runs and variable data for projects like direct mail campaigns;
    • Advanced inline finishing capabilities that provide high-quality finishes done in-house to save time and cost;
    • State-of-the-art technology that provides greater efficiencies around the company’s fulfillment and distribution platform, as well as its online storefront and operational framework;
    • Point of Sale material production is made easier and more cost effective through state of the art equipment; and
    • A growing team of sales, support and technical experts serving the Atlanta area.
  • Benefits for Our Suppliers: A goal of this acquisition is to add more value to our suppliers by continuing to grow the volume of offset print, digital, wide format, fulfillment and direct mail business that we generate year over year.

About Drummond’s Growth Strategy

Q: How does this acquisition align with Drummond’s growth strategy?
A: Our core values call Drummond to be fiscally conservative, while always striving for excellence and innovative solutions. This investment demonstrates our desire to grow our print operation in a manner that benefits our clients and enables the company to focus on offering new value-added solutions that meet various customer challenges. Drummond continually strives to provide the most innovative and unique print management solutions in the industry, and the addition of new technology and equipment from RGI’s print production business does just that. The cutting edge integrated technology solutions that RGI has developed, along with their extensive digital production platform and fulfillment experience will help continue to drive Drummond’s success.

Q: Will Drummond seek to acquire companies?
A: Yes, Drummond is recognized as one of the fastest growing companies in the print industry. This growth will be fed through an active acquisition strategy.

Q: What is Drummond doing to grow its Print Management business organically?
A: Drummond continues to hire new print management experts and sales representatives that bring a wide variety of industry experience to our growing team. We also partner with a growing number of “Best in Class” providers to enhance the breadth and quality of products that we offer.

About Impact on Business Operations

Q: What impact will RGI customers feel as a result of this strategic agreement?
A: Our goal is for this transition to be seamless for all customers. RGI customers will soon receive a welcome packet with a credit application, information on Drummond and contact details for additional questions or support. We appreciate your patience and understanding while this transition is underway.

Q: Who should RGI customers contact for print services needs?
A: Drummond and RGI have worked hand-in-hand to ensure a smooth transition for all customers. Customers can contact their current sales representatives for more information on this announcement, as well as for any print needs moving forward. We will continue to communicate any additional updates to our customers moving forward.

Q: Is Drummond acquiring any RGI employees as part of the deal?
A: Yes, 22 RGI employees joined Drummond, effective October 1, 2015. This augments our existing team of product experts, production team members and customer service support.

Q: Will there be any leadership changes as a result of this acquisition?
A: Drummond will add new leadership to the already solid RGI management team. New to the team will be Jim Hill, who has been in the industry for over 20 years. His unique blend of traditional commercial offset knowledge, prepress expertise and a proven record of integrating complicated software platforms will be an excellent complement to the Team. Jim will serve as the Director of Operations for Drummond’s Atlanta Division.

Q: How will RGI operate within Drummond?
A: Drummond will consolidate its Lawrenceville, GA manufacturing operation into RGIs facility in Marietta, GA. This facility will grow in capacity and capabilities.

Q: Will there be any impact on pricing or contracts in place?
A: No, there will be no changes to pricing or contracts as a result of the transaction.

Q: Will credit line change for RGI customers?
A: There will be no changes to credit terms at this time.

Q: Where can I find more information about this acquisition?
A: We are planning for a public announcement about this transaction to be made on Oct 21, 2015. At that time, we will launch a page on our website under “news” that will provide updates on this acquisition, as they are available and necessary.