Update: Taylor Corp. Outbids Hedge Fund in Bid to Acquire Standard Register
MANKATO, Minn.—June 17, 2015—Following up to our coverage yesterday, court documents have revealed that Taylor Corp., headquartered here, ended up as the top bidder at the bankruptcy auction for Standard Register—bidding $2 million more than the top bidder at a bankruptcy auction held in New York on Monday—and could become the owner of the Dayton, Ohio-based printing, document management and marketing services firm if a federal judge agrees to the sale later today, reported the Dayton Daily News.
Billionaire Glen Taylor, who founded Taylor Corp. and is also the owner of the NBA Minnesota Timberwolves and the Minneapolis Star Tribune newspaper, had legal representation at Monday’s bankruptcy sale of Standard Register.
The Daily News reported that Silver Point, a hedge fund that specializes in investing in distressed companies, was originally determined as the winning bidder, but Taylor Corp. increased its bid and Silver Point reportedly agreed to allow Taylor Corp. to be the top bidder. Although five companies reached the due diligence stage, Taylor Corp. and Silver Point ended up being the only two actual bidders.
According to the newspaper, a committee of unsecured creditors has filed several objections to the sale, including a claim that Silver Point "chilled the sale process," keeping other potential buyers away. Silver Point already holds a large financial stake in Standard Register, they pointed out, and had reached a $275 million buyout agreement with Standard Register when it first announced its Chapter 11 bankruptcy filing in March.
Mark Jacobs, a University of Dayton assistant professor of operations management, noted that some structural shifts could occur for both companies if Taylor Corp. wins the bid. For example, he said, both companies offer similar products and services, so Taylor Corp. would not need to maintain Standard Register’s managerial, marketing and administrative overhead costs. Jacobs also noted that since there is overlapping manufacturing capabilities, Taylor Corp. could shut down redundant Standard Register production facilities, or it could possibly decide to close some Taylor-owned operations instead.