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
Hollywood is spending more than ever to produce movies, with new technology and computer graphics imaging (CGI) bringing superheroes to life. Directors constantly one-up one another with special effects, while actors like Johnny Depp or Tobey Maguire are demanding beaucoup bucks to reprise their... Sluggish sales of video games have forced GameStop to take a decision to close around 150 retail locations. Digital downloads and competition from rivals are said to be the reason for shut down. The company operates around 6600 stores worldwide and has not revealed the list of shops to be closed. According to reports GameStop is planning the closure of up to 3 percent of their shops. After coming under fire for its decision to bar two teenage girls from boarding a flight on Sunday morning, United Airlines has defended its action. The two teenage girls were prevented by a gate agent on Sunday morning from boarding a United Airlines flight from Denver to Minneapolis as they were wearing leggings that were deemed as improper attire.
comments powered by Disqus
Follow RTT