Company To Acquire Baltimore Printer From a $258M Bankruptcy

Toner News Mobile Forums Latest Industry News Company To Acquire Baltimore Printer From a $258M Bankruptcy

Date: Thursday October 11, 2012 08:40:39 am
Viewing 1 post (of 1 total)
  • Author
    Posts

  • Anonymous
    Inactive

    Company To Acquire Baltimore Printer From a $258M Bankruptcy

    Quad/Graphics Inc. said Wednesday it will acquire a Baltimore printing company that has sought bankruptcy protection for $258 million.

    Quad said that acquiring the assets of Vertis Holdings Inc. would boost its position in retail advertising inserts, direct marketing and in-store marketing products.

    Quad said it intends to use cash and existing credit to finance the acquisition of Vertis, which is expected to have $1.1 billion in revenue and $60 million in earnings in fiscal 2012.

    To facilitate the sale, Vertis and its subsidiaries filed for Chapter 11 bankruptcy protection. Vertis shed $700 million in debt as part of its second bankruptcy in 2010.

    Vertis’s biggest unsecured creditor is the Pension Benefit Guaranty Corp. The size of the debt wasn’t listed in court papers. The second-biggest unsecured creditor was Abitibi Bowater, owed $19.4 million.

    Vertis said it expects to operate its business as usual until the sale closes and has obtained $150 million in debtor-in-possession financing from a group of lenders led by GE Capital.

    Quad said it will announce its plans for Vertis after the sale closes, most likely in the first three months of 2013.

Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.