MENASHA, Wis., Oct. 6 /PRNewswire-FirstCall/ — Banta Corporation (NYSE:BN) today identified the facilities that it previously announced would be closed or sold as part of its strategic initiatives designed to reduce costs, drive operating efficiencies and position the Company for continued growth.
The first phase of the initiatives, which consolidated Banta’s five print divisions into a two-division structure, was announced July 25. The second phase, announced Sept. 14, projected annual savings of $35 million and revealed five locations would be impacted.
As part of the review, each of Banta’s print sector facilities was evaluated based on customer service impact, volume of business at the facility, profitability, duplication of services and strategic fit within the Company’s new two-division structure. The outcome of this process resulted in the decision to close two facilities, put one facility up for sale and consolidate three facilities into a single new location.
Facilities affected are the following:
— Banta’s Eden Prairie, MN, book printing plant will close by the end of the year, affecting up to 72 employees. As market conditions have changed, the Eden Prairie facility has been subject to repeated downsizings dating back to 2003. While the facility’s employees continue to perform very well, the facility is too small to remain competitive and viable.
— The Spanish Fork, UT, literature management and fulfillment facility will also close by year-end, affecting up to 17 employees. This operation serves a limited number of customers and it was determined that they would be better and more efficiently served at one of Banta’s other three literature management operations.
— Banta’s Danbury, CT, direct marketing printing plant is being offered for sale. The plant employs approximately 200 employees. While the plant continues to have strong customer support, its focus on the general commercial print segment of the market no longer aligns with Banta’s strategy to emphasize specialized and highly personalized direct marketing materials.
— Three book fulfillment facilities will be closed and consolidated into a new and larger fulfillment center. Services provided at Banta’s Appleton, WI, Menasha, WI, and Kaukauna, WI, facilities will be moved to a single, yet-to-be-determined location nearby over the next 6 to 12 months, affecting up to 75 employees. Combined, the three facilities employ approximately 400. Management expects 325 of those employees will relocate to the new facility.
An additional reduction of up to 150 employees has already begun across the corporation as redundancies have been identified in management and administrative positions due to the Print Sector reorganization from five divisions to two. In total, 500 positions will be affected as part of the print division consolidation, facility closings and sale of the Danbury plant.
“Decisions that result in employees losing their jobs are always extremely difficult and regrettable, and we will support our affected employees through this transition by providing severance packages and outplacement services,” said Stephanie Streeter, Chairman, President and CEO. “These actions are a result of a comprehensive review of our Print Sector capabilities and forward operational needs by the management teams of our two new print divisions. They are necessary to improve our position in our highly competitive markets, help us meet our customers’ stringent cost and service requirements, and provide our shareholders with continued strong and sustainable financial performance.”
Banta announced Sept. 14 that total annual cost savings from its strategic initiatives, including the facility rationalization detailed above, are expected to be approximately $35 million in 2008, with $27 million in savings expected in 2007. In order to achieve these benefits, the Company will incur approximately $9 million of pre-tax charges in 2006 and $19 million of pre-tax charges in 2007.
Banta Corporation is a technology and market leader in printing and supply-chain management services. Our integrated approach provides a comprehensive combination of printing, binding and digital imaging solutions to leading publishers and direct marketers. We excel at helping customers find unique solutions to the complex challenges of getting their products and communications to market. We focus on five printing services markets: books, special-interest magazines, catalogs, direct marketing and literature management. Banta’s global supply-chain management business provides a wide range of outsourcing capabilities to some of the world’s largest companies. Services range from materials sourcing, product configuration and customized kitting, to order fulfillment and global distribution.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
This news release includes forward-looking statements. Statements that describe future expectations, including projections of cost savings, plans, results or strategies, are considered forward-looking. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated. Factors that could affect actual results include, among others, unanticipated difficulties in achieving expected cost savings through restructuring actions or the corporation’s cost improvement initiatives, unanticipated and/or yet-to-be-determined restructuring costs to be incurred in future periods and unanticipated issues or costs relating to the facility rationalizations described in this news release. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. The forward-looking statements included herein are made as of the date hereof, and Banta Corporation undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
CONTACT: Mark Fleming, Director, Investor and Corporate Communications, of Banta Corporation, +1-920-751-7713
