Bowne Reveals Cost Reductions
NEW YORK—Bowne & Co. revealed it will take additional steps in its cost reduction program that are expected to result in reductions in fixed and variable costs of more than $20 million in 2001. The cost-cutting initiatives are further realignments in manufacturing and composing operations, elimination of certain underutilized resources and a roughly 3 percent worldwide staff reduction through attrition, layoffs and reassignments. Bowne estimates that the related restructuring expenses will result in a fourth quarter pre-tax charge to earnings of less than $2 million. The company previously announced $7 to $9 million in annual cost savings, resulting from the combination of the Internet unit, Immersant, and Bowne Global Solutions' content business unit.
Executive Changes at Mail-Well
ENGLEWOOD, CO—Gerald Mahoney has retired from his post as chairman, CEO and a director with Mail-Well. Following Mahoney's departure, the company's board of directors promoted Paul Reilly from the position of president and COO, to the post of president and CEO. He is also a director. Tom Stephens, a director of the company's board, was elected chairman.
Court OKs Master Graphics' Plan
MEMPHIS, TN—Master Graphics has been given the OK on its reorganization plan by the U.S. Bankruptcy Court, and has also approved the sale of three non-core divisions valued at approximately $18 million. Proceeds from the sale will be used to reduce the company's secured bank debt. Under terms of the plan, Master Graphics' secured bank debt will be refinanced and the general unsecured creditors of Premier Graphics—the company's wholly owned operating subsidiary—will receive all the common stock in the reorganized Master Graphics. Existing common stock will be canceled.
CG Lands New Credit Deal
HOUSTON—Consolidated Graphics has entered into a new, $225 million secured credit facility with 11 banks, led by First Union National Bank. The new credit facility is composed of a $50 million, five-year term loan and a $175 million, five-year revolving credit line. The size of the combined facility may be increased to $275 million by adding other lenders at a later date.