As his company embarks on a new restructuring, Standard Register’s CEO said Monday that the company will remain based in Dayton at its Albany Street location where it has been headquartered for more than a century.
It was the first time Standard Register CEO and President Joe Morgan publicly commented on Standard Register’s plans for its headquarters following the company’s announcement in August it would acquire local rival WorkflowOne. Morgan said his employees have been informed of those plans.
The document services and brand management company also said Monday it is in compliance with New York Stock Exchange listing standards following a warning last year about compliance with those standards.
Last week, Standard Register filed documents with the government outlining a nearly $30 million restructuring plan and sought approval to increase the number of its corporate directors.
In late September, the company’s board approved a “new strategic restructuring program” tied to its acquisition of WorkflowOne.
Total costs of the restructuring, expected to continue through the end of 2015, are expected to be $29.8 million, Standard Register said in a filing with the U.S. Securities and Exchange Commission.
That includes $9.4 million for employee severance; contract termination costs of $7 million, from exiting leased facilities; and other costs of $13.4 million to consolidate facilities and move equipment and inventory, costs to consolidate its headquarters, and costs with the write-off of inventory, the company said.
“The company expects to achieve $40 million in annual savings when the integration of the two companies is complete,” Standard Register said in the filing.
Morgan on Monday said he could not go beyond that filing. He said the company is working with business consultant AlixParters on its restructuring, although it does not yet necessarily have specific employee-number targets.
“There will be facilities that will be rationalized,” Morgan said.
With the Workflow One acquisition, the company’s workforce had nearly doubled to about 4,000 employees, including 920 in Dayton.
The NYSE warned the company in April and May 2012 that its shares were not in compliance with the exchange’s listing standards. At the time, its shares (NYSE: SR) were trading at about $1.14. The NYSE’s minimum bid listing standard is $1 per share for 30 consecutive trading days.
In May, the company completed a reverse stock split, decreasing the number of its outstanding shares. The 1-for-5 stock split meant that five shares of Standard Register’s common and class A stock converted to one share.
The split increased the value of individual shares. After Monday’s close, shares of SR were $10.36, up two cents.
“We are energized and confident that we are on the right path for long-term sustainable growth,” Morgan said in a statement on meeting NYSE compliance standards.
Also last week, the company filed a notice with the SEC for a special shareholders meeting at 11 a.m. Oct. 24. Shareholders will consider whether to issue more than 2.6 million shares of the company’s common stock and increase the number of directors from seven to nine.
After the WorkflowOne acquisition, the company is required to appoint two directors designated by minority shareholders, Standard Register said in its SEC filing.
As part of the acquisition, Standard Register acquired WorkflowOne’s debt and issued to that company’s lenders warrants to acquire up to 2,645,952 shares of Standard Register’s common stock, the company said.
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