With its recent purchase of Milwaukee-based Vision Group International, Inc., KDV Label Co., Inc. served notice that it is moving up the ladder as a label converter to be reckoned with.

Prior to the acquisition, KDV had been profitably printing a broad range of packaging products from narrow-gauge film for the beverage industry to highly durable labels for dairy, food, automotive and consumer markets. But the Waukesha, WI, company had never pursued the premium promotional market that was Vision Group's main focus.

In late January 2003, Michael Scharber, president of Vision Group, approached Shane Vaughn, vice president of KDV, to provide some job quotes. "As our conversations continued, we realized this would be a real good fit for KDV to add to its product line because we've been mainly into private labeling," Shane says.

Because Vision Group's customer base was only "south of the border" in Mexico and Latin America, there was frequent downtime. Adding to the sporadic workload was its sole focus on promotional pieces with a one-two press operation. "We [KDV] had a good stable baseline of business, so when he had peaks, we could cover it with our existing people without needing additional labor," says Shane.

The Vision Group acquisition was finalized on March 7, 2003. Scharber was brought on as sales rep for the promotional market, which included all of Vision Group's current customers. The company's three-year old Mark Andy 2200 14-color press was brought over as well. Specifically set up for promotional work, KDV plans on using the press to further itself in that field, while also creating its own line of instant-redeemable coupons.

As far as Vision Group's customers were concerned, the transition went smoothly, Shane says, even with an order already in process. "The project went really smooth, but I think it was the existing customer that was very pleased that KDV was involved," says president Dick Vaughn.

When it comes to new promotional work, it's too soon to tell, Shane admits. "We've had some more opportunities and provided quotes. We've definitely piqued more interest out there."

Back in 1974, Dick and Karen Vaughn started up KDV Label in their Waukesha garage. They bought a used 450 Webtron press, rented a U-Haul truck and went to Chicago to pick up their purchase. Manufacturing remained in the garage for the next four years. A second 450 Webtron was purchased in 1976, and KDV's first employee was hired. Whenever a job was acquired, KDV would pick up its labelstock with a trip to Fasson in Niles, IL.

In 1978, the company moved to a 3,000-sq-ft building. While there, its first 650 Webtron press was added as well as a DuPont platemaking system.

In 1981, it was time to move again to its current headquarters in Waukesha. Now with 10 employees, KDV rented one-ninth of a 27,000-sq-ft facility. Four years later, the converter purchased the entire building. With the additional space, more presses were added and its own prepress department was put into place, expanding services to include film processing as well as platemaking.

A series of plant additions, computer-system upgrades, and further press acquisitions characterized the 1990s for KDV. Then last year, the converter took on a second location, bringing its total facility sq footage to 63,000.

Investing in new technology, including presses and other new equipment, is definitely a priority for KDV. The company's printing capabilities include conventional flexography, UV flexo and rotary letterpress from one to 14 colors.

The spending spree on its current presses started in June 1993 with the purchase of a new KoPack Super Rotary UV letterpress. Along with the ability to run six-color central-impression and two-color stack, the press' 10-in. web and 18-in. repeat also came with a PC Industries video-web inspection system, and rotary and flatbed diecutting.

The next purchase in August 1997: an Aquaflex 13 capable of printing five colors that has since been retrofitted twice. Employing an AETEK UV system and a two-sided corona treater, the press has a 13-in. web with 24-in. repeat. In 2000, it was expanded to run eight colors, and this year was upgraded again to run 10 colors.

In 1998, KDV purchased a used Ko-Pack Super Rotary UV letterpress similar to its first Ko-Pack. A second Aquaflex press was also installed that year. That unit prints with a VTI UV system and uses water-based or UV flexo inks. Capable of running film with its one-sided corona treater, the press handles a 16-½ in. web and 24-in. repeat.

Three Webtron 750 presses joined KDV Label's lineup in 1999. One prints five colors; the other two print eight. All are equipped with AETEK UV systems and PC Industries inspection for 7-½ in. webs and 15-in. repeats. A third Aquaflex Model 10 was also bought that year.

Two years elapsed before the next purchase—a rebuilt Webtron 750. This five-color press has an AAA Press UV system along with a 7-½ in. web and 15-in. repeat.

Last year, another Webtron 750 (now a PCMC model) was added along with an Aquaflex Instaprep. The Instaprep unit prints seven colors, and has an AETEK UV system as well as a PC Industries camera.

Among KDV's most recent buys this year is a used Webtron 650 purchased to check all PMS colors with banded anilox rolls for color matching. Acquisition of Vision Group brought in the Mark Andy 2200, and a second Aquaflex Instaprep with a two-sided corona treater was bought.

The KDV prepress department has been on its own buying plan as well. It can take supplied artwork in a variety of formats to produce high-quality customer proofs with a Barco/DuPont Cyrelw CDI Spark installed in 2001. The CTP system can translate the approved data with a DuPont Cyrel Fast 1000 TD thermal developer installed in January 2003.

As for future purchases, there are, ironically, no plans. "It's a standing joke around here," says Dick, with a snicker. Dick's wife, Karen, adds, "For the last five years, in December, Dick always says we're not buying any equipment next year, and by January he starts ordering."

The employees and their loyalty to KDV is what keeps the company going strong, say managers. "The reason we've been real successful here is a lot of our supervisors started with us when they were in high school or coming out of high school," Shane says.

Of the original four employees at KDV, two of them still work there. "We've gained a real strong loyalty from our employees and have a good core," Shane adds.

KDV fosters a strong family atmosphere, and it's dedicated to retaining employees as long as possible. "We've got a press operator who we don't need right now, but we have him rewinding just to keep him here," explains Shane. "We're supporting 80 people's families. That's the way we've always tried to look at things."

"In my opinion, if you've got a bean counter running the business, you're not going to stay in business," states Dick. "To buy the cheapest thing, hire the cheapest people, it just doesn't work."