Print Solutions Magazine, February 2005 -- Industry News

On Jan. 31, Eastman Kodak Co. agreed to buy Creo Inc. for $980 million in cash. The purchase is expected to be completed in the second quarter. Creo supplies software, digital printing plate technology and prepress equipment. Kodak’s move reflects its strategy to shift its dependence on traditional film-based photography, a declining market, to digital photography. Creo stockholders would get $16.50 a share, a premium of about 14 percent, Kodak said.

The agreement came less than two weeks before Creo stockholders were to vote on an effort by dissident investors to replace the board and its CEO. Creo’s board delayed the shareholders meeting to March 29, and investors voted in favor of the acquisition. In recent months, the Creo board had urged shareholders to reject a slate of board nominees including Robert Burton as CEO and chairman. Burton, the former president and CEO of Moore who improved the company’s bottom line by slashing payroll and other expenses, was put forward by a dissident stockholders group holding about six percent of Creo’s shares and comprised primarily of investment firms Goodwood Inc. and Burton Capital Management LLC.

Kodak also announced plans in January to buy the 50 percent stake of Kodak Polychrome Graphics that it doesn’t own from Sun Chemical, a company owned by Japan’s Dainippon, for $817 million. In March 2004, Kodak agreed to buy two digital-imaging units, including Heidelberg’s NexPress Solutions. In January 2004, Kodak paid $250 million for Scitex’s digital-printing business. Kodak had sold this unit to Scitex for $70 million in 1993.

Printegra, headquartered in Peachtree City, Ga., acquired the Greenie Business Check Catalog and VSR Custom Check, Forms & Envelopes product lines from Gateway Business Forms, South Gate, Calif. Production of Gateway Short Run products and Greenie check products was shifted to Printegra’s Yorba Linda, Calif., manufacturing facility last month. Gateway, a manufacturer of unit set and continuous forms and checks, has served the Western United States since 1935.

“We are confident Gateway/Greenie customers will see enhanced product capabilities, technology initiatives and services as the result of the Printegra acquisition,” said Casey Campbell, Printegra president and CEO and a member of DMIA’s Board of Directors. Printegra operates nine plants across the United States.

RR Donnelley & Sons and GSC Partners, an investment firm based in Florham Park, N.J., have announced arrangements that will result in the sale by GSC Partners of its entire 4.8 percent interest in RR Donnelley for approximately $360 million, including the repurchase of approximately $200 million of GSC Partners’ holdings by RR Donnelley in a share repurchase transaction. GSC Partners’ Chairman and Chief Executive Alfred C. Eckert III and Robert F. Cummings Jr., a senior advisor to GSC Partners, are directors of RR Donnelley. Both recused themselves from the board’s consideration of the repurchase.

RR Donnelley also said this week it is forecasting earnings from continuing operations, excluding items, of 57 cents for the fourth quarter and $1.61 for fiscal 2004. Fiscal 2005 earnings are expected to be $1.95 per share, assuming $200 million shares are repurchased during that year. In addition, the company said it plans to divest its Peak business, which provides integration, maintenance and consulting services related to automatic identification and data collection systems and hardware. The business reported a loss of $5.8 million, on sales of $135.2 million, for the nine months ended Sept. 30.

In related news, Moore Canada, an RR Donnelley, Moore Wallace Partnership, announced 3-year extensions to its multiyear, multimillion dollar agreements by Medbuy Corporation to produce a wide range of printed products and services. These agreements include management, printing and distribution services for forms and labels as well as the opportunity to provide solutions such as print on demand, e-procurement, e-forms and e-solutions. Medbuy Corporation is Canada’s leading national Group Purchasing Organization (GPO). It is owned by its members who are Canada’s leading health care providers. RR Donnelley acquired Moore Wallace on Feb. 27, 2004.

Document Security Systems Inc. and Boise White Paper L.L.C., a subsidiary of Boise Cascade L.L.C., recently announced Boise BEWARE Security Papers for various end-use categories, including legal, health care and business. Documents printed on Boise BEWARE Security Papers will reveal a hidden word when scanned, copied or faxed. “This technology is superior to other products on the market that have not kept pace with the evolution of office equipment,” said Rob Sommer, vice-president of Office Papers for Boise. Document Security Systems specializes in optical anti-scanning, anti-counterfeiting technologies for homeland security, governments, law enforcement agencies, security printers and brand packaging.

ACOM Solutions Inc. has acquired the assets of New Times Med LLC and has created the Electronic Medical Records Division to market the company’s software to chiropractic and other diagnostic and/or treatment-related health service providers. The chief assets acquired by ACOM are the RAPID and Spine Report software systems that enable practitioners to input diagnoses, treatment plans, notes and other information on a tablet computer during the patient visit. The system generates concise reports for insurance companies, attorneys and cash-paying patients. ACOM, based in Long Beach, Calif., has offices in several major U.S. cities.

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	Kodak to Acquire Creo On Jan. 31, Eastman Kodak Co. agreed to buy Creo Inc. for $980 million in cash. The purchase is expected to be completed in the second quarter. Creo supplies software, digital printing plate technology and prepress equipment. Kodak’s move reflects its strategy to shift its dependence on traditional film-based photography, a declining market, to digital photography. Creo stockholders would get $16.50 a share, a premium of about 14 percent, Kodak said. The agreement came less than two weeks before Creo stockholders were to vote on an effort by dissident investors to replace the board and its CEO. Creo’s board delayed the shareholders meeting to March 29, and investors voted in favor of the acquisition. In recent months, the Creo board had urged shareholders to reject a slate of board nominees including Robert Burton as CEO and chairman. Burton, the former president and CEO of Moore who improved the company’s bottom line by slashing payroll and other expenses, was put forward by a dissident stockholders group holding about six percent of Creo’s shares and comprised primarily of investment firms Goodwood Inc. and Burton Capital Management LLC. Kodak also announced plans in January to buy the 50 percent stake of Kodak Polychrome Graphics that it doesn’t own from Sun Chemical, a company owned by Japan’s Dainippon, for $817 million. In March 2004, Kodak agreed to buy two digital-imaging units, including Heidelberg’s NexPress Solutions. In January 2004, Kodak paid $250 million for Scitex’s digital-printing business. Kodak had sold this unit to Scitex for $70 million in 1993. Printegra Acquires Gateway Printegra, headquartered in Peachtree City, Ga., acquired the Greenie Business Check Catalog and VSR Custom Check, Forms & Envelopes product lines from Gateway Business Forms, South Gate, Calif. Production of Gateway Short Run products and Greenie check products was shifted to Printegra’s Yorba Linda, Calif., manufacturing facility last month. Gateway, a manufacturer of unit set and continuous forms and checks, has served the Western United States since 1935. “We are confident Gateway/Greenie customers will see enhanced product capabilities, technology initiatives and services as the result of the Printegra acquisition,” said Casey Campbell, Printegra president and CEO and a member of DMIA’s Board of Directors. Printegra operates nine plants across the United States. RR Donnelley Announces Share Repurchase RR Donnelley & Sons and GSC Partners, an investment firm based in Florham Park, N.J., have announced arrangements that will result in the sale by GSC Partners of its entire 4.8 percent interest in RR Donnelley for approximately $360 million, including the repurchase of approximately $200 million of GSC Partners’ holdings by RR Donnelley in a share repurchase transaction. GSC Partners’ Chairman and Chief Executive Alfred C. Eckert III and Robert F. Cummings Jr., a senior advisor to GSC Partners, are directors of RR Donnelley. Both recused themselves from the board’s consideration of the repurchase. RR Donnelley also said this week it is forecasting earnings from continuing operations, excluding items, of 57 cents for the fourth quarter and $1.61 for fiscal 2004. Fiscal 2005 earnings are expected to be $1.95 per share, assuming $200 million shares are repurchased during that year. In addition, the company said it plans to divest its Peak business, which provides integration, maintenance and consulting services related to automatic identification and data collection systems and hardware. The business reported a loss of $5.8 million, on sales of $135.2 million, for the nine months ended Sept. 30. In related news, Moore Canada, an RR Donnelley, Moore Wallace Partnership, announced 3-year extensions to its multiyear, multimillion dollar agreements by Medbuy Corporation to produce a wide range of printed products and services. These agreements include management, printing and distribution services for forms and labels as well as the opportunity to provide solutions such as print on demand, e-procurement, e-forms and e-solutions. Medbuy Corporation is Canada’s leading national Group Purchasing Organization (GPO). It is owned by its members who are Canada’s leading health care providers. RR Donnelley acquired Moore Wallace on Feb. 27, 2004. Document Security Systems, Boise White Paper Announce Alliance Document Security Systems Inc. and Boise White Paper L.L.C., a subsidiary of Boise Cascade L.L.C., recently announced Boise BEWARE Security Papers for various end-use categories, including legal, health care and business. Documents printed on Boise BEWARE Security Papers will reveal a hidden word when scanned, copied or faxed. “This technology is superior to other products on the market that have not kept pace with the evolution of office equipment,” said Rob Sommer, vice-president of Office Papers for Boise. Document Security Systems specializes in optical anti-scanning, anti-counterfeiting technologies for homeland security, governments, law enforcement agencies, security printers and brand packaging. ACOM Solutions Buys New Times Med ACOM Solutions Inc. has acquired the assets of New Times Med LLC and has created the Electronic Medical Records Division to market the company’s software to chiropractic and other diagnostic and/or treatment-related health service providers. The chief assets acquired by ACOM are the RAPID and Spine Report software systems that enable practitioners to input diagnoses, treatment plans, notes and other information on a tablet computer during the patient visit. The system generates concise reports for insurance companies, attorneys and cash-paying patients. ACOM, based in Long Beach, Calif., has offices in several major U.S. cities.