Merger with Vertis Likely

Posted in the Worldcolor Forum

Follow the Money

Silver Spring, MD

#1 Sep 11, 2009
Check this out. More changes coming....
Bertrand Marotte
MONTREAL — From Wednesday's Globe and Mail
Last updated on Friday, Sep. 11, 2009 03:09AM EDT
World Color Press Inc.(WC-T10.20-0.20-1.92%) can count on at least one key advantage in its post-bankruptcy-protection attempts to become a major player in what is expected to be another round of consolidation in the North American printing business.
The Montreal-based company - formerly known as Quebecor World Inc.- has appointed Mark Angelson, the former head of R.R. Donnelley & Sons Co., as its new chief executive officer, giving it an insider's knowledge of its historic rival.
Donnelley was rebuffed by Quebecor World in two takeover attempts earlier this year, and the pair have for years done battle with rival bids for assets and market share in the tough world of commercial printing, made tougher by the rise of the Internet.
The appointment, announced yesterday, also signals that a slimmed-down, financially healthier World Color is serious about wanting to be a consolidator and not a takeover target in a highly fragmented industry.
Mr. Angelson has a strong track record as a mergers and acquisitions specialist. He was the main architect six years ago of the merger between Donnelley and Moore Wallace Inc., and the earlier tie-up of Moore with Wallace Computer Services.
Mr. Angelson - 58 - was CEO of Donnelley between 2004 and 2007. He became non-executive chairman of World Color in June of this year before getting the nod as chairman and CEO yesterday. He is also the former CEO of Moore Wallace.
He takes over at World Color - formerly a key holding in the media empire of Pierre Karl Péladeau - from Jacques Mallette, who stepped down yesterday after taking the top job in December, 2007.
"I don't think [Mr. Angelson] is going there just to be running a business," said Charles Strauzer, managing director at CJS Securities Inc. in White Plains, N.Y. "I think he was brought in there by the board, with his M&A background, to acquire assets they might need."
Mr. Strauzer said a logical place to look for a possible merger deal is with Vertis Communications of Baltimore, Md., which specializes in direct marketing and advertising inserts.
Vertis also happens to be the former Big Flower Press, whose deputy chairman was at one time none other than Mr. Angelson.
What's more, one of World Color's key shareholders - Avenue Capital Management II LP, a New York hedge fund - is also a major investor in Vertis.
"If I were trying to put one and one together, this would be an area I might want to look at," Mr. Strauzer said.
World Color spokesman Tony Ross said the board decided Mr. Angelson is the right man to take the company where it needs to go as it emerges from bankruptcy protection in the United States and Canada.
World Color's lead independent director Tom Ryder said in a news release that Mr. Angelson is "a change agent who has spearheaded the development of corporate cultures that are entrepreneurial, collaborative and hard-driving."
RBC Dominion Securities Inc. analyst Drew McReynolds said in a note yesterday that the latest top-level executive changes at World Color - last week, chief financial officer Jeremy Roberts left suddenly to become senior vice-president of finance for George Weston Ltd. and Loblaw Cos. Ltd.- might presage further revolving-door activity.
The CEO's office has seen the following departures over the past six years: Charles Cavell, Michel Desbiens, Jean Neveau, Mr. Péladeau, Wes Lucas and Jacques Mallette.
told ya

Elk Grove Village, IL

#2 Oct 1, 2009
It's in the works. Vertis is already being worked into the production scheduling of Worldcolor. Only in the planning stage right now to see how the work load fits into ours.
geewhiz

Toronto, Canada

#3 Oct 1, 2009
told ya wrote:
It's in the works. Vertis is already being worked into the production scheduling of Worldcolor. Only in the planning stage right now to see how the work load fits into ours.
more jobs lost!!..won't be mine, they already got me....brace yourselves.
NickDanger

United States

#4 Oct 1, 2009
This is old news...
guest

Aubrey, TX

#5 Oct 1, 2009
Have to wait and see. Don't listen to the disgruntled former employees folks. This could be good news.
culturechange

United States

#6 Oct 5, 2009
If you dont have culture change you wont merge. It will not take place for a good year
geewhiz

Toronto, Canada

#7 Oct 5, 2009
guest wrote:
Have to wait and see. Don't listen to the disgruntled former employees folks. This could be good news.
ya,dont listen to us ''disgruntled'' former employees....we all got let go for no reason, but now, well the name change has brought a whole new attitude, customers are lined up for miles to give us contracts,and all the creditors QW f***ED over ,well they'll keep giving us stuff and hope we F**K them over again. Oh ,and the printing trade is the economic backbone of North America so Obama will likely throw a few trillion at it to prop it up. WAKE UP ALL!...last year at this time QW had over 30,000 employees ,it now has UNDER 20,000 and soon under 15,000.
geewhiz

Toronto, Canada

#8 Oct 5, 2009
guest wrote:
Have to wait and see. Don't listen to the disgruntled former employees folks. This could be good news.
Yeah folks!! most mergers are good news for all employees involved.
Billy

Sussex, WI

#9 Oct 5, 2009
geewhiz wrote:
<quoted text>
Yeah folks!! most mergers are good news for all employees involved.
__________

I understand your point of view, but he did say only that it COULD be good news.
geewhiz

Toronto, Canada

#10 Oct 5, 2009
Billy wrote:
<quoted text>
__________
I understand your point of view, but he did say only that it COULD be good news.
pardon my sarcasm but,i've never seen a merger that did not cost jobssss.
Billy

Sussex, WI

#11 Oct 6, 2009
geewhiz wrote:
<quoted text>
pardon my sarcasm but,i've never seen a merger that did not cost jobssss.
__________

I don't disagree with you. You're quite right about the likelihood of lost jobs. It is possible, though, that merging the TWO companies may make for a stronger ONE company.

However, based on past experiences with acquisitions and mergers, it seems to me that those are the types of things that "helped" our industry (and the country's economy) into the shitter.
guest

Aubrey, TX

#12 Oct 6, 2009
geewhiz wrote:
<quoted text>
pardon my sarcasm but,i've never seen a merger that did not cost jobssss.
I've never seen a merger that didn't cost jobssss either.
unionforever

Edmonton, Canada

#13 Oct 6, 2009
who winns if we merge ,same thing bigger is better
thats what got us in this mess.make a loss on every 1ooo but do more to make it up.eeeeeeeeeeeer
worried

New Castle, DE

#14 Dec 8, 2009
Anymore news on WC/Vertis merger?
worried

New Castle, DE

#15 Dec 21, 2009
still hearing rumors... anyone else???
World Color Employee

Memphis, TN

#16 Dec 21, 2009
if you look the merger between Wallace and Moore wasn't exactly a friendly one. Moore give up on the merger an than there was some legal court action. before the merger happen. So I wouldn't put a merger between R.R.D. and World Color on the back burner yet.
mechone

Oshawa, Canada

#17 Dec 21, 2009
Moore tried a hostal takeover of wallace in the mid ninties and wallcae took a poision pill.(shareholders rights) which world color already has Aug 20th ,2009 ,to prevent a hostle takover by RRD.In 2003 with print share shrinking Mark Angelson ( World Colors Chief) negoiated a friendly merger and then a merger with RRD.
Flexo Pressman

Sylacauga, AL

#18 Dec 30, 2009
Just look at the Merger with ACG a year ago. Now Vertis is bankrupt again. They called the Vertis/AmericanColor merger a merger. However it was a hostal takeover with severl ACG plants being shutdown with no warning within the first few months. It looks like it just keeps happening over and over.

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