Vertis Completes American Color Graphics Acquisition
Following merger, companies emerge from Chapter 11 bankruptcy.
Baltimore-based print advertising and direct marketing firm Vertis Communications has completed its merger with American Color Graphics, a pre-media and print service provider. The merger increases Vertis’ advertising insert and pre-media service offerings.
Financial terms of the deal were not disclosed.
The acquisition includes ACG’s 15 production facilities—including offset, flexographic print and pre-media operations—as well as a number of managed service sites. “With a stronger balance sheet, a larger talent pool and enhanced resources, we are transforming our company and look forward to working with our customers to leverage our capabilities and expertise in ways that are unprecedented,” Vertis CEO Mike DuBose said in a statement.
In July, Vertis and ACG filed concurrent Chapter 11 bankruptcy cases. Following a company-wide restructuring, Vertis says it was able to reduce its combined debt obligations by about $1 billion. The company will carry a $250 million senior secured revolving credit funded by GE Commercial Finance and a $400 million term loan funded by several lending parties.
Vertis reported a first half net loss of $81.8 million, up from a $44.9 million loss during the same period in 2007. Revenue was $615.7 million, down about 7 percent from $662.8 million during the first half last year.
First half EBITDA was $14.5 million, down considerably from $48.7 million through the first six months last year.