Quad/Graphics to Obtain Vertis Communications

“The complementary capabilities of our two businesses in retail advertising inserts, direct marketing and in-store marketing will further strengthen and expand our offerings, and will allow us to even better serve our clients, achieve additional efficiencies and build long-term value for our shareholders. We look forward to welcoming Vertis’ clients and employees into our family,” added Quadracci.

Vertis’ board and senior management team accepted the offer from Quad/Graphics following an extensive and in-depth process to review strategic opportunities for its businesses conducted over the past several months.

“The offer from Quad/Graphics was the most compelling proposal we received because it ensures continuity for clients and the greatest number of opportunities for our employees while also maximizing value for our stakeholders,” said Gerald Sokol, Jr., CEO of Vertis. “By combining the talents and resources of these two great companies, we will be able to enhance the levels of service, quality and technological innovation we provide to our clients, further improving the effectiveness of our programs and increasing clients’ returns on their marketing investments.”

As part of the sale through the Chapter 11 case, Vertis and its advisors will evaluate any competing bids that may be submitted in order to ensure it receives the highest and best offer for its assets. The agreement with Quad/Graphics comprises the initial stalking horse bid in the Court-supervised auction process under Section 363 of the Bankruptcy Code.

Vertis and Quad/Graphics anticipate the sale will be approved by the bankruptcy court during the fourth quarter of 2012 and will most likely close in the first quarter of 2013, pending the receipt of customary regulatory approvals. Vertis expects to operate its business as usual until the sale closes and, subject to the bankruptcy court’s approval, has obtained $150 million in debtor-in-possession financing from a group of lenders led by GE Capital, Restructuring Finance to ensure it is able to meet its financial obligations throughout the Chapter 11 cases.

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  • Stan Konwiser

    This acquisition is the next big step collapsing the capacity of the printing industry. Quad will get the advantage of all those newspaper inserts traveling through the Quad Logistics platform and Quad will get to supervise the capacity destruction by shutting down plants and taking equipment off line. If Vertis goes under, much of that equipment might reappear to compete with Quad in the future. Vertis has 19 plants, that comes to less than $14mm per plant all in! Now for a small cost, Quad can keep control and expand its market into the newspaper insert business. My guess is that at the end of this protracted industry shakeout, there are going to be only a few major players standing. Quad wants to be one of those players.

  • Michael Bense

    I’ve just finished reading the article regarding this latest Chapter 11 filing by Vertis. Must be nice to just file bankruptcy (twice) because of total mismanagement.

    It would be nice if Printing Impressions, did research to find out the number of suppliers that they have affected by their last filing, as well as, this one. How many small suppliers have gone out of business because of Vertis’s last filing and how many now will be on the verge of closing themselves because of these lost payments or pennies on the dollar.

    I wonder how many fine people with 10, 20 years or more, will now be loseing their jobs because of management’s ineptitude.

    The senior management at Vertis is an embarrassment to the industry and to the owners, presidents and CEO’s of other direct marketing organizations.

    Might also be nice to see how much money Mr. Sokol will walk away with, even after his complete failure as the CEO.


    Michael Bense
    Street Smart Marketing