RR Donnelley to Acquire Banta Corporation for $1.3 Billion in Cash
RR Donnelley & Sons Company and Banta Corporation jointly announced last week that they have signed a definitive agreement in which RR Donnelley will acquire Banta, a provider of printing, supply chain management and related services. The all-cash deal is valued at approximately $1.3 billion, or $36.50 per share after the special dividend of $16.00 per share already declared by Banta. The agreement has been unanimously approved by both companies’ board of directors and is expected to close in the first quarter of 2007.
With the move, RR Donnelley will expand the range of products and services it offers customers, while at the same time enhancing its services to the magazine, catalog, book and direct marketing segments.
Banta, headquartered in Menasha, Wis., is the third largest book manufacturer in the United States, according to Book Business’ List of “Top 30 Book Manufacturers.” It has annual revenues of approximately $1.5 billion and provides comprehensive printing and digital imaging solutions to leading publishers and direct marketers, including advanced digital content management and e-business services. Banta also provides a wide range of procurement management and other outsourcing capabilities to the world’s largest technology companies.
“Banta is an exceptional fit with RR Donnelley,” said Mark A. Angelson, RR Donnelley’s CEO. “This combination will create immediate cross-selling opportunities with our blue-chip customers as well as offer substantial synergies in our procurement, manufacturing and services operations. We are delighted to have the opportunity to better serve our customers by expanding the flexibility of our combined global manufacturing and service platforms.”
“Together, the companies will offer enhanced capabilities and an increased array of options to our customers, and I look forward to working closely with RR Donnelley’s management to ensure a smooth transition,” said Stephanie A. Streeter, Banta’s chairman and CEO.