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
Internet access is growing worldwide, but there is still a long way to go before the entire world is completely wired, a study from the Pew Research Center has found. The study also noted that men have greater access to the Internet than women in many nations. Backtracking on its early announcements on digital privacy, WhatsApp is planning to share member information, phone numbers and analytical data with Facebook, to make revenue from the platform. Discount retailers Dollar Tree Inc. and Dollar General Corp. both reported results for the second quarter that missed analysts' expectations. Looking ahead, Dollar Tree also forecast revenue for the third quarter below analysts' estimates and lowered its full-year revenue outlook. Shares of both companies are falling in pre-market activity.
comments powered by Disqus
Follow RTT