Cenveo Offer for Banta Expires Today
Stamford, Connecticut-based Cenveo Inc.’s unsolicited proposal to acquire Banta Corporation for $47 per share, expires today at 4 p.m. No word has been given by either company as to how they will proceed. Calls to both Banta and Cenveo went unanswered.
Menasha, Wisconsin-based Banta rejected Cenveo’s offer earlier this month, but did not rule out the possibility of a future sale or merger. Cenveo, a maker of envelopes and provider of digital printing services, has said it remains committed to completing the Banta acquisition.
Revenues Flat, Earnings Down
Banta, which prints books, magazines, catalogs and direct marketing materials, and is a global provider of supply-chain management services, last week reported third quarter revenues of $382 million, comparable to the $381 million reported in the third quarter of 2005. But its net earnings declined to $15.9 million from $21.7 million in the same period last year, primarily due to restructuring and asset impairment charges, and reduced pricing in both the company’s printing and supply-chain management sectors, the company said in a statement.
Banta also reported revenue of $1.13 billion for the first nine months of the year, also flat when compared to last year’s revenue. The company’s earnings from continuing operations were $45.7 million, compared to $49.4 million in the first nine months of last year.
The company has previously said it plans to eliminate 500 jobs, reorganize to consolidate its five printing divisions into two, and either sell or close five of its printing facilities that are not meeting profitability expectations or can be consolidated into other Banta operations.
Banta’s board last month approved payment of a special cash dividend of $16 per share and that it will borrow money to the pay the special dividend. The consolidation of its operations and special dividend are viewed by analysts as a means of boosting shareholder value in the company in light of the Cenveo bid.