Gary Willert
It’s been about a month and a half since LMI Solutions acquired Parts Now, the value-added supplier of printer parts and related accessories. According to the press release issued on September 29, the investment made by LMI Solutions will bolster the capacity of both organizations to strengthen their value propositions and help customers grow both their imaging businesses and their profits.
LMI has been on an acquisitions hot streak the past two years, particularly with the acquisitions of two leading printer remanufacturers, Printers Direct LLC and Global Printer Services LLC back in 2014. Those acquisitions transformed LMI into the largest printer remanufacturer in the world. The latest acquisition is the ideal complement to those previous deals in that Parts Now also offers printer service training and technical support, two key elements in an industry that is seeing an influx of A4 devices in managed print deployments.
Last week I caught up with LMI President & CEO Gary Willert to learn more about why LMI made this acquisition, what it means to LMI and Parts Now customers, and what’s next for LMI?
Why was Parts Now an intriguing acquisition target?
Willert: Obviously, we’ve known them for a long time, they’ve got a solid name in the industry, and they’re probably the most well-known parts company out there. It was a natural for us as far as a product extension. One of the things we’re looking at for our MPS customers is to offer the best quality, not only toner cartridges, but parts, fusers, and maintenance kits. Those are consumables obviously, and the better quality and higher yield is critical in that environment. That’s [another reason] why Parts Now is a good fit.
What does this acquisition mean to LMI and Parts Now customers beyond what you just shared with me?
Willert: More dealers are looking for a one-stop shop. But it’s not only that, as you’re probably aware, the toner cartridge interacts with the fuser and it’s part of the whole combination with that printer as well. Now we can get the best recipe, shall we say, for having that cartridge work with that particular fuser. And we also have the printers we’re refurbishing as well so we’ve got the whole gamut. [We can] thoroughly test and make sure we get the best combination of all products. The goal is to achieve the best quality and lowest cost per page.
Is there much integrating between the two organizations to do?
Willert: There’s still some work to do. We’ve already consolidated three distribution centers. Parts Now customers will now have access to LMI product and LMI customers will have access to Parts Now product. It’s going to be easier all the way around.
Now that you’ve got a few of these acquisitions under your belt do you find the process a lot easier from start to finish?
Willert: It is getting easier and we’re certainly getting better at it, but as anyone would tell you it’s still a challenge.
How much bigger can LMI get? Are we going to see more acquisitions and any hints as to where?
Willert: We’re continuing to look for new opportunities. It could be within the industry [or] it could be somewhat out of the industry. We want to continue to grow and add shareholder value. We’re committed to the space and the industry.
Do you anticipate another acquisition in 2016?
Willert: I’d say we will be doing something.
