A merger between Blue Star Group Australia and IPMG will deliver “meaningful industry consolidation”, Michael Hannan says.

The two announced on Sunday that they had entered into a ‘heads of agreement’ to merge their printing operations, with plans to complete the deal by the ebd of May.

It will bring together two Australian family businesses – the Hannan family’s IPMG and Geoff Selig’s Blue Star interests – to form a $700m-plus communications group offering “an unparalleled spectrum of services”.

IPMG executive chairman Michael Hannan says both companies are financially strong with minimal debt: “The Hannan family is genuinely excited to be affiliating its printing pperations with Blue Star to lead meaningful industry consolidation which will benefit both the industry in general and our customers,” he says.

The two groups employ a total of 2500 people. The companies say the joint venture will bring together senior management from both businesses.

Included in the deal are IPMG’s Hannanprint, Offset Alpine Printing, Inprint, Bolton Print, PEP Central and Inpack, and Blue Star Group’s Blue Star Print, Blue Star DM, Blue Star IQ and Webstar.

IPMG’s Digital Marketing Services businesses – including SBM, Holler, BlueCentral, Max Australia, Spectrum Communications, Traction and Independent Digital Media – are not included.

Geoff Selig says the merger provides a wonderful opportunity: “I feel strongly that our compelling value proposition will serve our customers and people very well,” he says.

Picture: Webstar