logo
Share SHARE
FONT-SIZE Plus   Neg

Quad/Graphics To Acquire Vertis For $258 Mln.

Vertis Holdings Inc. Wednesday said it has filed for relief under Chapter 11 bankruptcy protection act, and has agreed to be acquired by Quad/Graphics Inc. (QUAD) for $258.5 million.

Quad/Graphics expects the acquisition to be accretive to its earnings, excluding any non-recurring integration costs. The combined entity will realize efficiencies and cost-savings derived from a superior and more efficient operating platform, expanded volume-driven mailings and more efficient procurement programs, the Sussex, Wisconsin-based company said in a statement.

Quad/Graphics expects the deal to strengthen its retail advertising inserts, direct marketing and in-store marketing solutions. Vertis is expected to generate about $1.1 billion in revenues for the fiscal year 2012.

Quad/Graphics expects to fund the acquisition using cash on hand and with borrowing from its revolving credit facility.

This is for the third time since 2008 that Vertis has filed for bankruptcy protection. In 2010, Vertis had exited from the bankruptcy by exchanging its debt for equity.

Vertis has obtained $150 million financing to ensure that it runs its operations as usual, while the company seeks approval from court for the deal.

Vertis will also evaluate any competing bids to get the best offer for its business. The company expects to receive Court approval in the fourth quarter, secure the necessary regulatory approvals in the first quarter of 2013 or earlier, and close the transaction shortly thereafter.

QUAD closed Wednesday's trading at $18.96, up $0.05 or 0.26%, on the Nasdaq. The stock further gained $0.24 or 1.27% in after-hours.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The holiday throng seeking to take a flight out to their preferred destinations at the at New York's Kennedy International Airport ahead of the Memorial Day holiday were in for a rude shock. Technology played a spoilsport, as a computer system broke down Sunday evening at a terminal, causing flight delays and cancellations that resulted in manual check-in process for thousands of holiday passeng The month of May saw the FDA greenlight 5 new drugs, including 1 new molecular entity, and surprisingly turn down 1 drug candidate, whose approval was considered a no-brainer by some experts. Lab equipment maker Thermo Fisher Scientific Inc. has agreed to acquire electron microscope maker FEI Co. for about $4.2 billion in cash, the two companies said Friday. Thermo Fisher noted that FEI's electron microscopy platform will complement its own mass spectrometry systems to accelerate advancements in structural biology.
comments powered by Disqus
Follow RTT