Building on print business

Print Action, Jun 2003 by Avery, Jodi

After completing the acquisition of three commercial printing companies at the end of April, Teldon International became one of the largest printers in lower mainland British Columbia. This current success is ironic because when the company was founded in 1969, and for close to 20 years after, it didn't own a single press.

Teldon's original focus was the manufacturing of promotional products. From calendars to memo pads and key chains to pens, Richmond-based Teldon provided businesses with self-promotional giveaway items. All printed material was bought from external printers.

In the 1980s, Teldon's management began researching the printing industry. "We decided that a large part of our program was on printed paper, like calendars. We decided to manufacture it ourselves," says Michael McAdam, general manager and COO of Teldon International. To begin its internal printing capabilities, the company purchased a sheetfed press in the early part of the decade, then a Miller 66 half web press in 1989. Even after this printing expansion, the company still did not consider itself a printer. The presses were only used to manufacture the printed promotional products in the Teldon line.

"We've always viewed our promotional product side as our primary business," says McAdam.

This view changed in 1995 when a Heidelberg M600 full web press was installed. "With the presses on hand, we found we had excess capacity. To keep the presses running, we moved into commercial printing and began to sell our services to local companies," says McAdam. "We've played that dual role ever since, but the original focus of promotional products was still our main business."

The company currently has five Heidelberg Quickmaster DI presses, the first of which was installed in 1998. But these digital machines are used solely for personalizing the promotional products. Up until the recent acquisitions, two-thirds of Teldon's business came from the promotional product market.

From 1995 until last year, Teldon employed three commercial print sales representatives. But the commercial print sales played second fiddle. High-season for promotional products comes in the fall of every year, according to McAdam. During this time, the commercial print reps had to hold off sales because the presses were consumed with calendars.

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Last year, to the joy of the commercial print sales reps, Teldon's management began to examine further print expansion. "We noticed our commercial print has grown steadily over the last few years and the reality is we never treated it as a business. We treated it as a filler," says McAdam. "We realized we are operating two distinct businesses."

As Teldon International began to separate the two business models it created two distinct divisions: Teldonprintmedia and Teldonpromotional-services. The commercial print division was first expanded abroad. With the purchase of four commercial printers in Sydney, Australia, Teldon tested the waters for similar possibilities at home.

"Sydney was fractured no different than North America. We did that successfully down there. And we wanted to replicate it in the lower mainland. We noticed we could get into the market easily," says McAdam.

In early 2003, Teldon began to shop around for possible commercial printers to acquire.

Last April three acqusitions were officially announced; Rainbow Press, Intermedia Press and Clarke Printing were grouped into the Teldonprintmedia division. With the deals, Teldon grew by 25 per cent.

"Because the sheetfed market was actually a space between our half web market and our small sheetfed. It fit nicely between the two," says McAdam. "Now we can offer to our existing clients the whole range of printing equipment to fulfil their needs. From business cards to large-run, high-quality magazines and everything between."

This new sheetfed area of Teldonprintmedia was moved into the Rainbow Press facility in Richmond, BC. The companies bring a list of equipment including two Heidelberg 29-inch presses, one Heidelberg 40-inch press and an Agfa platesetter, along with a myriad of finishing machines. Fifty-six employees have been added to the company's full-time staff of 178, which during peak season can fluctuate as high as 300.

The staff are joining an award-winning team, with 38 Gallery of Superb Printing Awards and a rank of 16 on BC Business Magazine's 2002 list of Best Companies to Work for in BC.

McAdam says the organization is adopting a new sales focus for Teldonprintmedia. With $33 million in sales last year, Teldon International is aiming to add another $10 million next year by creating a program-based sales approach. "We are interested in looking at our customer's commercial print needs and really putting a program together as oppose to taking an order ad hoc. We will do that. But the more interesting aspect of this offer is filling a whole range of printing needs as a package."

This print program approach to sales and Teldon's community focus are the reasons for the company's next major plans. With land it currently owns in Vancouver, Teldon is planning to build a facility to merge all its five buildings into one complex. "Our community will be cultivated even further when we aren't all over the map." McAdam hopes to achieve this by 2006.