YEAR IN REVIEW — 2006: BANTA ON THE LOOSE
In the middle of the month, Burton revealed some of the moves that were designed to reduce Cenveo’s overall cost structure by $75 million, including the closure of its Centennial plant in Denver and an envelope manufacturing facility. The nationwide cost-cutting initiative was slated to claim roughly 1,400 jobs.
Press manufacturing giant MAN Roland announced it was going public in March. MAN AG and Allianz Capital Partners created a joint venture to purchase MAN Roland Druckmaschinen and take it public. MAN AG planned to retain 35 percent equity in the company.
Des Plaines, IL-based Schawk Inc. sold its educational product development, catalog, publication and New York-based advertising premedia operations to The CAPS Group for $29 million in cash plus assumed liabilities. The advertising premedia facility was renamed HudsonYards, with industry veteran and former PRINTING IMPRESSIONS/RIT Printing Industry Hall of Fame inductee Diane Romano taking on the role as president and COO.
Quebecor World of Montreal reorganized its U.S. book and magazine platform in April, closing two facilities and letting go more than 800 employees. The printer also named former Sun Chemical executive Wes Lucas as its new president and CEO, replacing Pierre Karl Peladeau.
Speaking of leadership changes, the torch was passed at Sussex, WI-based Quad/Graphics, where Joel Quadracci assumed the CEO position in place of his retiring uncle, Tom Quadracci. The elder Quadracci retired on his 35th anniversary with the company, founded by his brother, Harry V. Quadracci.
In a shocking announcement, Houston-based Consolidated Graphics (CGX) announced it was exploring strategic alternatives to enhance shareholder value, hiring UBS Investment Bank in an advisory capacity. One of the alternatives explored was a possible sale of the company. But before the summer could heat up, CGX decided to stay the course.
In May, the USPS proposed an 8.5 percent rate increase that, if passed by the Postal Rate Commission, would likely take effect in May of 2007. The USPS also proposed new pricing structures for different shapes of mail that aligns prices with processing costs.