Standard Register Rocks the Industry with Acquisition of WorkflowOne
If Standard Register’s stock price is any indication of future success, president and chief executive officer Joseph P. Morgan, Jr.’s schedule is about to fill up fast.
The Dayton Business Journal reported shares closing at $13.80 (up $10.80 or 360 percent), after peaking at $16.65 on Aug. 1, 2013. The spike shortly followed news that the Dayton, Ohio-based document processing and marketing company had purchased another local business: WorkflowOne.
According to a release, Standard Register acquired WorkflowOne in a transaction valued at $218 million, financed by assuming $210 million of long-term debt and the issuance of warrants with an estimated value of $8 million. WorkflowOne will initially operate as a subsidiary of Standard Register under its existing brand. The combined company will operate under the Standard Register corporate umbrella.
“We are a customer-centric company and expect no disruptions to current orders or customer work,” Morgan said. “The combined company will be able to offer its entire portfolio of products, solutions and services to customers.”
Morgan will lead the combined company, which consists of 4,000 employees, including 920 in Dayton. WorkflowOne offices will remain open until further notice.
“Decisions related to office space will be determined based on lease arrangements, but for now, no changes are planned,” Morgan remarked.
Timothy A. Tatman, former president and chief executive officer of WorkflowOne, will serve in an advisory capacity through the integration. Other positions will continue to undergo evaluation.
“There are some synergies as a result of both companies operating in the same industry,” Morgan said. “But, at this time, those synergies are still being evaluated.”
The acquisition is being promoted as “one of the largest printing and print management companies in North America.” Both companies have software development, traditional and digital printing and distribution facilities throughout the U.S. and in Canada and Mexico. Standard Register serves many of the largest health care and commercial organizations with a portfolio of technology-enabled multi-channel communication and marketing solutions supported by a nationwide printing, kitting and distribution network. WorkflowOne provides printing, document management, distribution and marketing services to a large customer base.
Standard Register expects to achieve $1 billion in annual revenue and $40 million in annual savings when the integration of the two companies is complete.
For more information, visit www.standardregister.com.