Standard
Register announced today that it has acquired WorkflowOne in a transaction
valued at $218 million, financed by assuming $210 million of long-term debt and
the issuance of warrants with an estimated value of $8 million. The transaction
advances Standard Register’s revenue position, enhances its product and
solutions portfolio, broadens its customer base, improves its cost structure
and provides greater financial flexibility and stability.
Standard
Register expects to achieve $1 billion in annual revenue and $40 million in
annual savings when the integration of the two companies is complete. The
acquisition is expected to deliver value creation benefits immediately from
combined sales and operating capabilities and to improve 2013 EBITDA (a
non-GAAP measure of earnings before interest, taxes, depreciation and
amortization). The Company will go to market under the Standard Register
corporate umbrella and will rapidly integrate its operations. WorkflowOne will
initially operate as a subsidiary of Standard Register. Joseph P. Morgan, Jr.,
president and chief executive officer of Standard Register, will lead the
combined company. Timothy A. Tatman, former president and chief executive
officer of WorkflowOne, will serve in an advisory capacity through the
integration.
