Donnelley Nabs Banta in Blockbuster Deal

CHICAGO—Mark Angelson was unable to go Trick-or-Treating on Halloween Tuesday night, but the CEO of RR Donnelley didn’t go home with an empty bag after pulling off the biggest M&A shocker in years.

Donnelley swooped in and acquired Banta Corp. of Menasha, WI, out from under Cenveo Chairman and CEO Robert Burton, who had set an October 31 date as a deadline for Banta to accept his company’s offer of $50 per share. When the 5 p.m. deadline passed, Burton withdrew his proposal.

But when the smoke cleared later that day, Donnelley and Banta had reached a tentative deal at $52.50 a share, or $1.3 billion. The all-cash deal comes out to $36.50 per share after the special dividend of $16 per share already declared by Banta.

The deal, which is pending customary closing conditions, regulatory approval and the OK of Banta’s shareholders, is scheduled to close in the first quarter of 2007. It was unanimously approved by the board of directors for both companies.

“Banta’s business has considerable overlap with our publishing and retail services operation, creating immediate opportunities for cross-selling procurement, manufacturing, premedia and logistics synergies,” Angelson said in an investors conference call on Wednesday.

Stephanie Streeter, chairman and CEO of Banta, will aid Donnelley during the transition phase but will not remain with the company. Her plans were not immediately known.

Banta, which posted revenues of $1.5 billion, overlaps Donnelley in markets including magazines, catalogs, books and direct mail.