Commercial printer grows through minority ownership

Creative Printing Services Inc. in Des Plaines has found success by targeting Fortune 500 companies striving to do more business with minority companies.

Creative Printing became the nation's largest African-American-owned commercial printing company in January 2005 when Haves McNeal, 54, acquired a 51 percent interest, according to McNeal and his lender, LaSalle Bank.

A former senior vice president of operations at R.R. Donnelley Inc., McNeal has changed the vision for Creative Printing Services. Prior to 2005, Creative Printing Services had experienced challenges, including slow growth.

"They had no prospective customers and were struggling to find new customers," McNeal said. "When I came in, not only did I have to stop the bleeding but also go out and find new customers."

His goal is to grow the company "organically and to get it up to be a $40 million company." He said that when purchasing the company he couldn't envision that but "now as I'm approaching $30 million, it's getting a lot closer."

The company reported $25.1 million in revenues for 2006. This year "I project that we're going to do $27 million," said McNeal, president and chief executive officer. "We'll do well in terms of earnings."

Creative Printing Services and its 170 employees produce annual reports, marketing brochures, catalogs, greeting cards, educational publications, directories, tabloids, newsletters and other materials.

Because some Fortune 500 companies are required by government contracting rules to spend with minority businesses, Creative Printing sees that as advantageous for the company.

"This is a value proposition for us," said Sheldon Ross, vice president of business development and marketing. "We've been exposed to tremendous opportunities that we weren't before. It has definitely helped to turn this company around."

When owners John Chesney, Michael Halm and Frank LaMontagna sought to sell the company several years ago, McNeal committed $600,000 of his personal savings, and borrowed $2.4 million from LaSalle Bank and $2.1 million from the three partners, who retained a 49 percent interest, equally divided.

According to McNeal, he has the option to acquire complete ownership of Creative Printing Services in 2010, depending on its financial condition.

Becoming minority owned helped Creative Printing grow.

"We target Fortune 500 companies that need MBE (Minority Business Enterprise) spending," McNeal said. "That differentiates us from some of our competitors. Not all companies care about that, but there are some that do, particularly Fortune 500 companies."

Clients of Creative Printing Services include Allstate Insurance Co., General Mills Inc., Kaplan Inc., McGraw-Hill Cos., Microsoft Corp., Verizon Communications Inc., Starbucks Corp., BlueCross BlueShield Association, the Chicago Convention and Tourism Bureau, the Illinois Secretary of State's office, Roosevelt University and numerous others.

"Minority firms are under-represented in our economy, but their growth rates are faster," said Russ Larsen, senior vice president of LaSalle Bank. He said the bank "was eager to participate in this transaction because it represents a dual goal of meeting key business objectives and helping to grow the minority-owned business market."

LaSalle Bank, the Chicago Minority Business Development Council and the Chicago Minority Business Opportunity Committee worked collectively to structure a transaction satisfactory to the sellers, according to a www.lasallebank.com press release.

The success and growth of Creative Printing illustrates how becoming a certified Minority Business Enterprise can help turn a business around and save jobs.

"Minority businesses contribute to our economy, because our country is changing substantially and our demographics are changing," said Sheila Hill, president and chief executive officer of the Chicago Minority Business Development Council. "Minority businesses are like an economic engine for our country."

However, Creative Printing Services has much more going for it in addition to being minority owned. It distinguishes itself from competition by its strategic Midwest location, experienced work force and diverse printing machinery.

"Most companies our size don't have the diverse printing capabilities as we do. This helps us to stay ahead of our competition," McNeal said.

Additionally, craftsmen for the company have 10 to 12 years of experience. These workers are required to complete a four- to six-year apprenticeship before becoming journeymen.

"The last thing that a customer wants is someone that's going to take on their job and not know what they're doing," he said.

Because he has been able to succeed, mentoring smaller minority business owners is something that McNeal takes pride in doing. He said often times minorities don't have business role models and this leaves them to figure out answers to questions for themselves.

"(Minorities) don't have those kind of contacts, and so those of us that do we have to reach out and pull others along," he said. "It's about giving back."

Business profile

Name: Creative Printing Services Inc.

Business: Commercial printing

President: Haves McNeal

Headquarters: Des Plaines

Employees: 170

2006 revenue: $25.1 million

Web site: www.creativepsi.com