Citicorp Sells Its 44% Stake in PIP Printing

Citicorp has sold its 44% stake in Agoura Hills-based PIP Printing to majority owner Kane-Miller, PIP said Thursday.

Kane-Miller, a privately held investment firm based in Tarrytown, N.Y., is now the sole owner of PIP, a pioneer in the $6-billion-a-year instant printing business. The purchase price was not disclosed.

Kane-Miller bought out Citicorp’s share as part of its plan to pump more money into PIP’s operations, spokeswoman Susan Falck said. The company would not provide further details of its plan.

In recent years, PIP, which has 745 outlets nationwide, has been sued by numerous franchisees, who claim the company has failed to provide technical support and regional advertising as promised. In turn, the company last year filed suit against many of its franchisees for failing to pay royalties.

PIP is under investigation by the Federal Trade Commission for possible violations of franchise disclosure rules. The company said the investigation is pending.

PIP, formerly known as Postal Instant Press, was founded in 1968 by Los Angeles commercial printer Bill Levine. It was taken over in a $68-million leveraged buyout involving Kane-Miller and management in 1989.

Citicorp, which put up $53 million to finance the takeover, forgave the loan in 1992 in return for PIP stock.