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: Quote) 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
Apple Inc. said Tuesday after the markets closed that its first quarter profit rose 38% from last year, driven by all time record revenue from iPhone and Mac sales as well as record performance of its App Store. The company's quarterly earnings per share also breezed past Wall Street expectations as did its quarterly sales. We are just a few weeks into 2015 and it has already been a busy year for merger deals and merger talks. Here is a list of some of the M&A stories that have made headlines so far in 2015. Diversified electronics maker TE Connectivity Ltd. is nearing a deal to sell its network solutions business unit to CommScope Holding Co., Inc. (COMM) in a deal valued at about $3 billion, according a Wall Street Journal report on Monday. A deal could be announced as early as this week. There has...
comments powered by Disqus
RELATED NEWS
Trade QUAD now with 
Follow RTT