Joe Geraghty: Insights on Standard Register Sale – Dayton Daily News
Dayton Daily News article features insights from Joe Geraghty on the bidding and sale of Standard Register.
A Minnesota printing and marketing company could be one of the top bidders in the bankruptcy sale of Standard Register in federal court.
A late filing Monday in U.S. Bankruptcy Court for the District of Delaware shows Phillip Bohn, an attorney with law firm, Gray Plant Mooty, has asked to represent Taylor Corp. in proceedings involving the sale of Standard Register.
Taylor Corp., a similar company to Standard Register, has more than 80 companies in the United States, Canada, Mexico, Britain, France, India, China, Bulgaria and the Philippines. Based in North Mankato, Minn., the company has more than 9,000 employees.
Glen Taylor, the billionaire founder of Taylor Corp., also owns the NBA team Minnesota Timberwolves and newspaper Minneapolis Star Tribune. He stepped aside on June 9 as CEO of the company in favor of his niece, Deb Taylor, who joined the 40-year-old privately held graphic communications conglomerate more than four years ago, according to the Star Tribune. Taylor remains chairman of the company.
A phone call left with Taylor Corp. was not returned.
Bids for Standard Register were due June 11 and an auction of the former Fortune 500 company’s assets took place Monday.
The name of the successful bidder won’t be announced until Wednesday, when the court will confirm the new owner. Company officials declined comment until after the announcement.
Standard Register, founded in 1912, is a printing and marketing company that employs 3,500 workers, including 850 in Dayton.
The company filed for Chapter 11 bankruptcy protection March 12, simultaneously announcing the $275 million buyout agreement with a group led by Silver Point. The bankruptcy filing listed Standard Register’s total assets at $453 million and total debts at $584 million.
Another court filing on Monday said a strategic buyer placed a qualified topping bid that “exceeded the purchase price” under Standard Register’s $275 million agreement with a group led by Silver Point.
Silver Point had the opportunity to increase its bid at the auction of the company, said Joe Geraghty, senior managing director for the Dayton office of Conway MacKenzie, which specializes in turnarounds and restructuring.
“Strategic buyer” indicates the unnamed bidder could be a competitor or a company in the same industry. In contrast, Silver Point is a “financial buyer” that specializes in investing in distressed companies.
If the strategic buyer acquires Standard Register, that company may look at consolidating and/or eliminating administrative expense, Geraghty said. That buyer also could consolidate Standard Register’s operations, “if there is capacity from the strategic to absorb some of those operations,” he said.
Court documents show 19 potential buyers demonstrated enough interest in Standard Register to execute non-disclosure agreements. The company engaged in protracted, in-depth due diligence with five parties.
Geraghty expected Silver Point to continue its bidding at Monday’s auction.
“Silver Point has invested a significant amount of money in making this acquisition and also providing the financing, so I wouldn’t be surprised if they don’t make an effort to buy it through this process, notwithstanding an overbid,” he said.