WARRENVILLE, Ill. and
NEW YORK, Feb. 4, 2022 /PRNewswire/ -- Lakeside Book
Company ("Lakeside") and
ALJ Regional Holdings, Inc. (NASDAQ: ALJJ) ("ALJ") jointly
announced today that they have entered into a definitive agreement
for Lakeside's acquisition of all
of the issued and outstanding shares of common stock of ALJ's
wholly-owned subsidiary Phoenix Color Corp. ("Phoenix"). Headquartered in Hagerstown, Maryland, Phoenix is a specialty printer of book
components, children's books, and other print-related products with
printing facilities in Indiana and
Maryland.
The transaction is expected to close during the second calendar
quarter of 2022, subject to customary closing conditions and
regulatory and stockholder approvals.
"We know Phoenix well as a
recognized leader in book components. Adding their team's
capabilities to Lakeside's service
offerings will enable our publishing customers to conveniently
manage book and cover printing in one place," said Dave McCree, Lakeside's Chief Executive Officer. "We are
always looking for ways to make the printing supply chain more
efficient for publishers and this transaction would be a
significant step in that direction."
"The combination of Phoenix's
component production capabilities and Lakeside's book manufacturing services would
provide customers the benefits of streamlined order processing,
scheduling and speed of delivery. Lakeside has been a key Phoenix customer for a number of years, and we
are confident Lakeside will be a
good home for the exceptional Phoenix team," said Marc Reisch, Chairman and Chief Executive
Officer of Phoenix.
"Phoenix has been a terrific
member of the ALJ family of companies. While we are sad to
lose the Phoenix team, we are
excited that we have found a synergistic home for the business that
will enable it to enhance its services to its customers," added
Jess Ravich, Chief Executive Officer
of ALJ.
About Lakeside
In 1864, R.R. Donnelley started as a partner at a small printing
company in Chicago. In the years
that followed, he grew the company into one of the largest and most
trusted printing service providers in the world. As the decades
passed, the company continuously expanded its services, and in
2016, LSC Communications was spun out to offer specialized
solutions to publishers, brands, retailers, and merchandisers. In
2020, Atlas Holdings acquired LSC Communications and in 2021,
rebranded its Book division the Lakeside Book Company. The company
mission states: "We are committed to crafting books and services
that are meaningful. We take pride in the challenge of fulfilling
our customers' visions."
About ALJ
ALJ Regional Holdings, Inc. is the parent company of (i)
Faneuil, Inc., a leading provider of call center services, back
office operations, staffing services, and toll collection services
to commercial and governmental clients across the United States, and (ii) Phoenix Color
Corp., a leading manufacturer of book components, educational
materials, and related products producing value-added components,
heavily illustrated books, and specialty commercial products using
a broad spectrum of materials and decorative technologies.
About Phoenix
Phoenix has been a premier
supplier for publishing companies for over forty years. The
company's extensive print and finishing capabilities positions
Phoenix to meet its customers'
most demanding design and scheduling requirements.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the U.S. federal securities laws about Phoenix, Lakeside, ALJ and the proposed sale
transaction, including but not limited to all statements about the
timing and approvals of the proposed sale transaction; ability to
consummate the sale transaction; future operations; future business
performance of Phoenix,
Lakeside and ALJ; and all outcomes
of the proposed sale transaction, including synergies, cost
savings, and ability to leverage broader industry capabilities,
which are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Words such as
"expect," "likely," "outlook," "forecast," "preliminary," "would,"
"could," "should," "can," "will," "project," "intend," "plan,"
"goal," "guidance," "target," "continue," "sustain, "synergy," "on
track," "believe," "seek," "estimate," "anticipate," "may,"
"possible," "assume," and variations of such words and similar
expressions are intended to identify such forward-looking
statements. You should not place undue reliance on these
statements, as they involve certain risks and uncertainties, and
actual results or performance may differ materially from those
discussed in any such statement. Factors that could cause actual
results to differ materially include but are not limited to general
economic and capital markets conditions; inability to obtain
required regulatory, stockholder or other approvals or to obtain
such approvals on satisfactory conditions; inability to satisfy
other closing conditions; the occurrence of any event, change or
other circumstance that could give rise to the termination of the
definitive agreement; the effects that any termination of the
definitive agreement may have on Phoenix or its business; legal proceedings
that may be instituted related to the proposed sale transaction;
unexpected costs, charges or expenses; and other risks and
uncertainties discussed in ALJ's annual report on Form 10-K and
quarterly reports on Form 10-Q filed with the Securities and
Exchange Commission and available through EDGAR on the SEC's
website at www.sec.gov. All forward-looking statements in this
release are made as of the date hereof and we assume no obligation
to update any forward-looking statement.
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SOURCE ALJ Regional Holdings, Inc.