R.R. Donnelley Purchases Banta Corp. for $1.3 Billion
Donnelley Absorbs Shenandoah Valley Operated Printing Company.
ROCKINGHAM COUNTY - R.R. Donnelley & Sons Co. will acquire Banta Corp. for $1.3 billion in a deal that will expand the reach of the nation's No. 1 printing company.
Announced Tuesday, the agreement combines two longtime Midwestern printing firms, both of which have operations in Harrisonburg and Rockingham County. The all-cash deal is valued at $52.50 per share, including a $16 special dividend announced last month by Banta, according to Bloomberg.
Earlier Tuesday, printing rival Cenveo Inc. withdrew a $50-a-share offer for Banta. That takeover offer was valued at about $1.2 billion. Donnelley's acquisition of Banta was approved by the boards of directors of both companies and is expected to close in the first quarter of 2007, pending approval by the U.S. Securities and Exchange Commission.
Complementary Companies
While managers of the local Donnelley and Banta plants declined to comment, executives with both companies praised the merger. Donnelley Chief Executive Officer Mark Angelson called Banta "an exceptional fit for R.R. Donnelley." Stephanie Streeter, Banta's chairman and CEO, said combining the two companies would offer "enhanced capabilities and an increased array of options."
Donnelley is the largest printing firm in the United States with 2005 revenue of $8.4 billion. The company prints Sports Illustrated, TV Guide and the Harry Potter books, and offers a wide range of printing services. The Chicago-based Donnelley has operations in the U.S., Canada, Latin America, Europe and China.
In April 2004, Donnelley acquired printing competitor Moore Wallace Inc. in an all-stock deal valued at $2.8 billion. A Moore Wallace facility in Luray closed before Donnelley's purchase. Since then, the company has spent $1.2 billion acquiring the Astron Group, a British print services firm, and OfficeTiger, a New York-based business service outsourcing company.
Banta, which has operations in the U.S., Europe and Asia, prints books and other materials and provides supply-chain management services.
In July, Banta announced it would reorganize its five print divisions into two divisions, eliminating management structure, reduce costs and streamline customer service.
Banta has 40 facilities worldwide and employs 8,000 people. The two plants in Harrisonburg employ 420 people. The Donnelley plant in Rockingham County has 1,000 employees.
In April, Donnelley announced a $17.5 million expansion at the facility on Kratzer Road that will bring 18 additional jobs to the plant.
Contact Dan Wright at 574-6293 or dwright@dnronline.com