LSC Communications said Tuesday it has agreed to be acquired by Atlas Holdings, a move that will get LSC out of bankruptcy.
Atlas has agreed to pay $63.4 million in cash and assume certain liabilities, including LSC's pension obligations, according to a 197-page LSC filing with the U.S. Securities and Exchange Commission about the transaction.
LSC is a publicly held Chicago-based printing and logistics firm which has its biggest concentration of facilities in Lancaster. Atlas, based in Greenwich, Connecticut, is a private equity firm with industrial holdings around the world.
Atlas was the top bidder in an auction process overseen by the U.S. Bankruptcy Court, said LSC. The number of bidders was not immediately available.
The deal, expected to be completed in the fourth quarter, is supported by LSC’s key secured creditors.
“Through this transaction, we will be able to move ahead with an improved balance sheet and a more sustainable capital structure, enabling LSC to continue investing in our business and building on our strong foundation,” said Thomas Quinlan III, chairman and CEO of LSC, in a prepared statement.
Spokesmen for LSC and Atlas could not be immediately reached for comment on what impact, if any, the transaction will have on the Lancaster facilities.
Quinlan, in his statement, said the caliber of LSC’s work will not change under the new owner.“We will continue serving our customers with the same high standards of quality, reliability and innovation they expect,” he said.
Atlas owns 21 companies in a host of industries, from aluminum processing to food processing. Together they generate more than $6 billion in revenues annually.
LSC operates the former R.R. Donnelley printing plants on Greenfield Road and Harrisburg Pike. Together they employ about 1,200 people. Both plants continue to operate as usual, producing magazines, catalogs and newspaper advertising inserts.
LSC, which was last profitable in 2016, filed for bankruptcy reorganization in April to reduce its debt and become more competitive. Its annual revenue last year was $2.9 billion.