Standard Register Co (NYSE:SR) acquires Workflow One, registers rise
Standard Register Co (NYSE:SR) has bought WorkFlowOne for $218M. The acquisition was announced by SR on Thursday and its stock skyrocketed by 360.49% at the close of the day’s trading session. The buyout is being financed with the assumption of $21M of long-term debt and warrant issuance that have an $8M estimated value. Both, SR and WorkFlowOne are roughly of the same size and are headquartered in Dayton. The combined company has a workforce of 4,000 employees.
Creating a mammoth
The company will be integrating its operations very rapidly and go to market under the Standard Register name. At the outset, WorkFlow One will be operating as a SR subsidiary. The latter’s president and SEO, Joseph Morgan Jr will he the head of the combined company. Via the integration, the former president and CEO of WorkFlowOne will be serving in an advisory capacity. This acquisition will lead to the creation of the biggest printing and print-management company in North America.
Both companies have conventional digital printing as well as distribution facilities. These are spread right across the U.S, Mexico and Canada. They are also involved in software development. SR serves a large number of the biggest commercial and healthcare organizations. It has an impressive portfolio of multi-channel marketing and communication solutions that are technology-enabled. These services are supported by a countrywide kitting, printing and distribution network. WorkFlowOne provides document management, printing, marketing and distribution services to a massive customer-base.
SR expects to achieve annual revenue of $1B and annual savings of $40M once the integration of the companies is complete. The expectation is that the acquisition will reap yields instantaneously from the combined operating capabilities and sales. According to the release, this will go a long way in improving the EBITDA of the combined company.