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January, 2007

Two-for-One: Spiral of Ohio, Action Bindery Grow Together

A "two-for-one" deal is an age-old selling strategy designed to generate interest in a product or service - and give consumers added value for their money. Spiral of Ohio, based in Cleveland, OH, and Action Bindery of Atlanta, GA, are taking the concept a step further by giving post press services customers better bang for their buck by offering them the formidable capabilities of both companies.

When a customer sends a project to either Spiral of Ohio or Action Bindery, they gain access to the notable resources of both operations. Each company is a full service bindery in its own right, but their joint ownership allows customers to leverage the equipment flexibility and capacity of both facilities. This allows them to shift especially large jobs among both companies to meet aggressive customer deadlines. Positioned in the Midwest and South, the companies offer this flexibility to clients throughout Eastern half of the U.S., as well as some large Southwest and West Coast printers looking to distribute products along the East Coast.

John Helline, co-owner and CEO of Spiral of Ohio and Action Bindery, says this flexibility offers the companies a valuable edge in a highly competitive marketplace.

"The changes that have taken place in the industry over the last few years require trade binderies to be as nimble as possible," said Helline. "We regularly produce jobs with quantities of several hundred thousand pieces and more. The ability to deliver those jobs faster than other companies is a distinct advantage."

Extending the Reach

Founded in 1937, Spiral of Ohio is an institution among Midwest trade binderies. The company has long been one of the premier providers of mechanical binding services in the region, offering Wire-O, plastic spiral, spiral wire and plastic comb binding.

Housed in a space measuring 55,000 square feet, Spiral of Ohio has enormous capacity for short-run and long-run jobs, and can handle large volume with relative ease. On its expansive shop floor, the company boasts a fleet of more than two dozen Wire-O, plastic spiral, spiral wire and GBC (plastic comb) binding machines. Additional mechanical binding equipment includes six automatic punches from Kugler and Sickinger and nine semi-automatic punches, as well as a full range of collating, drilling, cutting, shrink wrapping and round cornering capabilities.

Despite the name, mechanical binding is far from Spiral of Ohio's only area of focus. The company possesses an enviable range of adhesive binding capabilities, including standard hot melt, PUR and layflat binding performed on two high-speed Kolbus Ratiobinders.

In 2000, the company was purchased by an ownership group headed by John Helline. Far from a dyed-in-the-wool binder, Helline's business experience had to that point occurred outside the graphic arts industry. However, many of the faces familiar to customers remain at Spiral of Ohio. Almost all of the company's customer service and plant managers have been at Spiral of Ohio for more than 10 years.

According to Helline, Spiral of Ohio's combination of an experienced management team and potential to reach beyond its traditional marketplace are what intrigued him.

"Spiral of Ohio had enjoyed a long-standing reputation for high-quality, timely production for both short and long run lengths," explains Helline. "We saw an opportunity to extend the company's reach without changing the qualities that have earned continual business from many printers throughout the region."

Significant Investments

At a time when many companies are implementing a cautious, conservative approach to business development, Helline is pursuing an aggressive growth strategy designed to increase both the share of work they receive from existing customers as well as overall market share. Both Spiral of Ohio and Action Bindery made substantial investments in 2006 in upgraded equipment and facilities to better position the companies to meet these objectives.

One of the key investments at Spiral of Ohio was the installation of a Gateway plastic spiral binding system to meet the company's increased demand for mechanical binding. With a peak production speed of 1,400 books per hour, the Gateway system joins the company's five other plastic spiral binding units and will enhance the company's speed and capacity in this service area.

"Plastic spiral binding has become huge for us," said Helline. "Even with the combined capacity we can offer at both Spiral of Ohio and Action Bindery, we felt we needed to make this investment to give our customers even more production possibilities."

Joe Piazza, Vice President of Sales for both Spiral of Ohio and Action Bindery, also sees the Gateway system as a valuable addition.

"Publishers and designers are increasingly recognizing the value of mechanical binding styles such as plastic spiral," said Piazza. "The Gateway system is one of the fastest available, giving us the power to offer quicker turnarounds on large-volume projects. It's also positioned us to take full advantage of future demand."

Helline and his investment partners apply the same business philosophy of organic development and acquisitive growth to Action Bindery in Atlanta, where a recent move and multiple upgrades have revolutionized their operations and increased capacity. Prior to the move, Action already utilized four Wire-O binding lines, nine plastic spiral binding lines, plastic comb, spiral wire, and multiple automatic and hand punching stations.

Action's new facility boasts 35,000 square feet of space to accommodate additional equipment.
As part of the move and expansion, they installed a Kolbus 24-pocket Ratiobinder at the site, one that includes electronic signature recognition and a Nordson PUR gluing system. This state-of-the-art machine gives Action the ability to handle perfect binding for full-color, high-quality book projects, something that both Action and Spiral want to more frequently going forward.

"Spiral of Ohio and Action Bindery are now positioned among the industry leaders in PUR adhesive binding," said Helline. "We believe this is where significant growth will occur, especially for image-heavy books that demand a strong, durable binding style. PUR offers that by creating a strong bond even on sheets with thick ink and coating coverage into the spine area."

Equipment wasn't the only investment. Action showed a fresh commitment to sales in the Atlanta market when they hired Chad Dillon as a new sales representative for the area. Joe Piazza hopes that clients will utilize not only the added benefit of new machinery but the existing knowledge of the industry that both binderies possess.

"The fact that many employees have spent their whole careers in the company adds a dimension of experience that is an invaluable resource for our clients," said Piazza.

The added capabilities of both the equipment and the sales force puts Action and Spiral of Ohio in a position to handle a higher volume of work as well to increase quality without increasing the time a project takes. "Clients have indicated that as their own need for growth increases so does the need to be faster, better and more professional looking than their competition. The increased capabilities that both binderies now offer allow us to better serve client needs" says Helline.

All in the family

As sister binderies, Spiral and Action have a rare relationship that isn't just mutually beneficial for the two companies, but can provide a broad spectrum of services and support, helping the customer to advance their goals and save time.

Having the extra muscle of a second facility with redundant capabilities standing behind you provides an element of security. Additional space and equipment translate into more raw power, options and flexibility. The Cleveland and Atlanta binderies are in the enviable position of jointly serving much of the East Coast, complementing one another's efforts, and are able to handle very high volumes of work individually or in cooperation with one another.

Both binderies now have installed a new open-architecture MIS (management information system) system that allows a seamless flow of information between the two facilities. Shared access to information promotes quality in service and production, and avoids potential problems arising from information gaps.

Helline and his investment partners aren't yet finished, and may still be looking to enlarge their family. "We're still pursuing growth opportunities at this point," the CEO says. "The success we've enjoyed with the Spiral and Action binderies has created excitement over future expansion."

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