A U.S. Securities and Exchange Commission filing Monday said the net proceeds from the $307 million sale, after paying costs related to the transaction, were used to satisfy certain obligations of Standard Register and its subsidiaries to creditors.
Standard Register doesn’t anticipate there will be sufficient proceeds available from the transaction and other potential asset sales to result in any distribution to company stockholders, the SEC filing said.
Taylor Corp. CEO Deb Taylor was not available for comment, a company spokeswoman said.
In a statement, Taylor said the successful close of the deal “officially turns the page for Standard Register’s customers and employees and moves us into a new chapter that we believe is strengthened as a combined organization.”
“Moving forward together, we have an even broader range of communications services, products and technologies, and an experienced team dedicated to providing the highest quality customer service in the industry,” Taylor said. “As we integrate the two companies, we are finding even more ways to provide value to our customers.”
The combined company has more than 12,000 employees working at more than 80 companies with operations in 32 states and nine countries.
Dayton Development Coalition president and CEO Jeff Hoagland said local leaders were “excited about the transition” to Taylor Corp.
“Leaders from the DDC, the city of Dayton, Montgomery County and JobsOhio have had several discussions with the Taylor Corp. team and we all have a common goal — to keep the company as a strong partner in the business community,” Hoagland said.
Dayton Area Chamber of Commerce president and CEO Phil Parker said the sale’s closing brings some stability to Standard Register, founded in 1912 in Dayton.
“We want to make sure that the company is in good hands and that it not only just survives, but we hope thrives,” Parker said. “So here is that stability with the hope that it has the opportunity to grow and prosper once again under new ownership.”
Chamber officials are still waiting to hear about outcomes for Standard Register’s local workers, Parker said. The company has 34 facilities throughout the U.S. and Mexico.
Standard Register employs 3,500 workers, including 850 in Dayton, according to the most recent company estimate. However, those numbers now could be lower depending on whether workers received employment offers from Taylor Corp.
Parker said it is “fairly common” for companies to review the hiring process and existing staff of firms they acquire.
“For a lot of us, we are as anxious to hear about this as the employees are,” he said.
Monday’s SEC filing said three executives resigned as officers of Standard Register, effective Aug. 1. They were Benjamin Cutting, chief financial officer; John King, president of the company’s Healthcare business unit; and Gerard Sowar, executive vice president, general counsel and secretary.
Cutting, King and Sowar remain company employees, a spokeswoman said. Sowar will remain as director of the company’s subsidiaries.
Taylor Corp. was the successful bidder for Standard Register through an auction approved June 19 in federal bankruptcy court. The privately held graphics communications company, headquartered in North Mankato, Minn., submitted the winning bid of $307 million.
Founded by billionaire businessman Glen Taylor, owner of the NBA’s Minnesota Timberwolves and the Minneapolis Star Tribute newspaper, Taylor Corp. had an estimated $1.3 billion in annual sales and 9,000 employees worldwide prior to the Standard Register acquisition.
Standard Register’s Chapter 11 case will conclude when all claims are settled, company officials said.
In June, a committee of unsecured creditors reached a settlement to accept a $5 million payment, among other considerations, to drop its lawsuit against Silver Point Capital L.P. and Standard Register over the latter company’s 2013 acquisition of WorkflowOne.
Standard Register filed for Chapter 11 bankruptcy protection on March 12 and simultaneously announced a $275 million buyout agreement with Silver Point, a Connecticut-based hedge fund. The bankruptcy filing listed Standard Register’s total assets at $453 million and total debts at $584 million.
On March 5, Standard Register’s stock was de-listed by the New York Stock Exchange. The NYSE suspension moved the company’s shares to a marketplace commonly associated with penny stocks.
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