Bar Graphic Machinery to grow 'organically' after acquisition

BGM managing director shares how the company plans to grow 'organically' after being acquired by a multimillion-dollar company, Duplo.

In August, Bar Graphic Machinery (BGM), a UK-based producer of finishing equipment for the labeling and packaging industry, announced it was selling the business to Duplo, a Japanese manufacturer of print finishing equipment that has a UK presence in Addlestone, Surrey, UK.

BGM was incorporated by Bill and Annmarie Rhodes over 33 years ago from the garage attached to the couple's home. It has since moved locations twice to its current site in Bradford, UK.

Duplo has decades of experience in the packaging world. Established in 1959 in Japan, it now exports its products to more than 115 countries in Europe, the Middle East, Africa and Russia.

Bill Rhodes told L&L at its open house event in October that he was confident in selling BGM to Duplo because he felt the company he built would not be 'smashed into the ground' and keep things consistent for its loyal customers, barring small changes to progress the business further.

Additionally, he shared that it has ‘always’ been his plan to sell the business as he and his wife approach their retirement.

"What really set BGM apart was the honest, human connection that was at the heart of the company"

When asked if anyone in the family would consider continuing the family business, Bill Rhodes stated that he 'wouldn't want it for them', not because of a lack of faith, but because of the time and effort required to run BGM.

Bill and Annemarie's youngest daughter and her husband still work at BGM and will continue in their current roles. Paul Rhodes is the machine shop manager, and Sally Rhodes works in the sales and marketing team.

Customers have sought out the expertise of BGM, and specifically Bill's handiwork, for decades, as the company offers the opportunity to create bespoke label finishing machines. If a customer has an innovative idea that will aid their current workload, BGM will provide it if it can.

Sprite Labels, based in Nottingham, UK, has been a customer of BGM since 2016. Tony Katsouris, managing director of the company, said: 'What really set BGM apart was the honest, human connection that was at the heart of the company.

'We placed our first order with BGM in Nov 2016. We needed a plain label converting machine in super quick time.

'BGM's response was fantastic. We received the equipment in a few short weeks at a great price. That was the start of a great relationship.

Katsouris can also vouch for the bespoke craftsmanship at BGM, saying: 'We have always felt that our projects, and sometimes wacky ideas, would be listened to and discussed.

‘Several of these have come to fruition, albeit with amendments, and this has helped us in our aim to do more interesting things with sticky materials and tag stock.'

The relationship between Bill, the BGM team, and its clients is strong. So much so that Bill phoned Katsouris personally to inform him of the acquisition.

Katsouris also shared that he is not worried about the acquisition impacting the pair’s relationship, saying: 'I would expect that Duplo understands the relationships that BGM has built over the years and would want to nurture and develop those relationships going into the future'.

Adam James, newly appointed managing director of BGM, was confident when asked who else can provide this level of bespoke workmanship in label finishing machinery, saying 'no one' is producing the number of tailored products BGM is.

James began his career in the labeling and packaging industry as a machine operator, and for this reason, he will be an excellent fit for manufacturing machinery for end users.

"I would expect that Duplo understands the relationships that BGM has built over the years and would want to nurture and develop those relationships going into the future"

Before BGM, James worked at CS Labels, where he served as managing director. In that role, the company began producing digitally printed flexible pouches, an avenue James mentioned while speaking to L&L.

BGM already offers flexible packaging film rewinders, but James alluded to the company expanding flexible packaging offerings via other machines.

Earlier this year, BGM announced the 550 iSR, a 550mm/22in wide web slitter, and even since then, the company has modified it, adding a retractable knife to make precise cuts on the splicing tables. Before that development, it would take an operator with a Stanley knife to make these cuts, leaving marks on the machine while risking mistakes to products or injury to the operator.

The knife runs along channels set at specific angles through grooves, making it borderline impossible to make a mistake with a cut. At the same time, it will save the operator time when searching for a misplaced Stanley knife.

BGM claims up to 50 percent of its machines are bespoke, and for this reason, customers continue to return, not just for new machines to bolster their assets, but also to rebuild machines that are almost 20 years old.

James shared that a customer who had bought a machine two decades ago wanted to keep the same machine but have the components replaced, which are essentially the same components they were when it was purchased.

At its heart, the company has a family-oriented feel, and while the industry is struggling to recruit and retain youthful talent, BGM prides itself on recruiting apprentices. There are currently two at the company, Dan Percival and Jake Riley.

Everything, except for the paint work of the machinery, is done in-house at BGM, leaving every detail down to the team at BGM, another reason why its machines are sought after.

James told L&L that Duplo's intention is not to tamper with the fundamentals of what BGM already does and to let it grow 'organically'.

In terms of branding for the company, it will stay as it is, apart from maybe changing the color of the BGM logo to conform with the same blue of the Duplo logo, other than this and the addition of 'a Duplo company' under the current BGM logo.

Additionally, James told L&L that Hideo Tanaka, president of the Duplo Corporation, had always wanted to enter the flexographic printing industry, and acquiring BGM was the right fit for both companies.

Although James stated that he and Duplo, as well as the founders, wanted the company to grow organically, BGM has hired Patryk Dudzinski as its sales manager, as the company had not previously had a dedicated sales role.

Dudzinski has a strong background in the labeling and packaging industry, having worked at Graftotronic as its product manager for more than six years before joining BGM