Banta Looks Toward Future
MENASHA, WI—Among the terms RR Donnelley conceded in its agreement to acquire Banta Corp. were the promise to donate $1.5 million to local charities, along with giving employees of each entity equal consideration when pondering staff reductions, the Milwaukee Journal Sentinel reported, citing Securities and Exchange Commission (SEC) filings.
At Banta’s request, the local charitable contributions will continue for at least three years. Additionally, Chicago-based RR Donnelley will pay $1 million toward continued tuition reimbursement for Banta employees for two more years, while supplying comparable employee benefits for one year, the paper reported.
Donnelley will also offer severance benefits similar to Banta’s for 18 months, and will provide $3 million to fund a retention bonus pool for Banta workers needed through the transition, the Journal Sentinel reported.
The employees’ benefits in total paled in comparison to the golden parachute launched for Stephanie Streeter, Banta’s outgoing chairman, president and CEO. Streeter gets $6.6 million—three times her annual pay along with a bonus. Donnelley will pony up $4.5 million to cover Streeter’s tax liability, per the terms of her contract, the paper noted.
Streeter also has $7.2 million worth of Banta stock.
It’s in the interest of both parties to complete the acquisition, expected to close by the end of March 2007. Banta gets $17.1 million if Donnelley breaks the deal, while Donnelley would reap $34.2 million—and up to $4 million in expenses—if Banta backs out.