Shareholders approve Quad/Grapics purchase of Worldcolor; Diversey to eliminate 120 jobs in Racine area
Shareholders approve Quad/Grapics purchase of Worldcolor
The shareholders of Quad/Grapics and Worldcolor approved Quad/Graphics’ purchase of Worldcolor late last week, clearing one of the last hurdles to the planned.
The companies await a decision from the Québec Superior Court (Commercial Division) today and other closing conditions. A hearing in respect of the final order approving the arrangement is scheduled to take place later today. If the acquisition is approved, it is expected to be completed on July 2.
Once Quad/Grapics completes its acquisition of Worldcolor, it will become a publicly traded company on the New York Stock Exchange.
Magnetek again falls below NYSE listing standards
Menomonee Falls-based Magnetek Inc. was recently notified by the New York Stock Exchange that it is below the continued listing standards of the NYSE, because the company’s average market capitalization has been less than $50 million over a consecutive 30 trading-day period and its last reported shareholders’ equity was less than $50 million.
In November of 2008, the company was notified that it was not in compliance with the continued listing standards of the NYSE. The company regained compliance with the listing standards as of May.
Magnetek now has 45 days to submit a business plan to the NYSE demonstrating how it intends to regain compliance with the listing standards within 18 months. If the NYSE does not accept the company’s plan, it could be delisted from the stock exchange.
Diversey to eliminate 120 jobs in Racine area
Sturtevant-based Diversey Inc., a manufacturer of commercial cleaning, sanitation and hygiene products, plans to reduce its Racine-area workforce by about 120 positions, including all positions in its Racine manufacturing plant. The company currently has 85 production workers in Racine.
It will also reduce its administrative staff in Sturtevant by 35.
The production jobs will be lost over the next two years as Diversey shifts production to plants in Watertown and London, Ontario, said John Matthews, senior vice president of corporate affairs.
The company will make its products using capacity at its two remaining production plants as well as contract manufacturers. Diversey’s Racine plant is located inside S.C. Johnson’s Waxdale facility.
The private equity firm Clayton, Dubilier & Rice bought a 46 percent stake in Diversey last fall for about $477 million. The Johnson family retains a roughly 50 percent stake in the company.
At the time of the purchase, Diversey announced plans to build a new production facility within its distribution center in Sturtevant. After engineering work and a study of federal building codes, those plans were found to be too expensive, Matthews said.
“We never intended to build a stand alone facility,” he said. “Now that we cannot (build inside our Sturtevant distribution center), what makes the most sense is to use our existing capacity at our own plants and among contract manufacturers in the area.”
Diversey does not yet have agreements with any contract manufacturers to make its products, Matthews said. The company made its announcement as early as possible to tell its employees about the two year transition period.
“We are working to provide as many employment opportunities as possible, either in Watertown or within contract manufacturing operations,” Matthews said. “We announced this to our employees and publicly before we had all of the details worked out. We’re making every effort to keep as much volume in Wisconsin and as close to Sturtevant, where we have our distribution center.”