Hess Print Solutions Announces Plan for Sale to Bang Printing
Hess Print Solutions and its subsidiaries (HPS), a provider of accountable print performance solutions and printed products from Brimfield, Ohio, recently announced that it has entered into an agreement to sell substantially all of its assets to an affiliate of Bang Printing.
The decision to sell to Bang Printing followed an extensive process of reviewing various strategic opportunities for HPS that was aimed at ensuring that it will remain a viable long-term business partner for customers, vendors and employees. This sale will allow HPS and Bang Printing to combine their existing capabilities and provide customers with a more diversified suite of products and services.
"The strategic decision to pursue a financial restructuring through a sale will allow us to proactively and quickly improve our financial position and ensure we have the resources to meet the needs of our clients, suppliers, employees and other business partners going forward" said Jerry Haywood, interim CEO of HPS.
Bang Printing has over 100 years of experience in the book and commercial printing industry, with its corporate offices in Brainerd, Minn. Bang offers complete printing, binding and fulfillment services at a competitive price, with facilities in both Minnesota and California.
"Bang Printing is excited to announce this opportunity to acquire Hess Print Solutions. The combination of Bang Printing's extensive product line and the strong reputation of HPS will allow us to offer our customers one-stop solutions for their print and marketing needs" said Chris Kurtzman, President and CEO of Bang Printing.
To facilitate the sale of assets, HPS has commenced a prepackaged voluntary Chapter 11 proceeding in the United States Bankruptcy Court for the District of Delaware. HPS has obtained debtor-in-possession financing with certain of its existing secured lenders, which along with the company's cash flow, is expected to provide the working capital necessary to meet its ongoing obligations while the company pursues approval of the sale.
HPS has filed a number of motions with the Court requesting authority to keep the business running as usual. The immediate relief being requested includes a request to pay all wages, salaries and commissions, as well as honor the employee benefits programs, and to continue existing customer programs.
HPS also filed a motion to schedule a hearing to confirm its prepackaged plan and a separate motion to seek approval of the bid procedures to allow the ongoing marketing of HPS's assets, scheduling an auction with Bang Printing as the stalking horse bidder, and to further schedule a hearing to approve the sale of its assets.
This auction process will allow third parties that comply with the court-approved auction procedures to submit bids for HPS's assets, and in the event HPS receives any competing bids, HPS will hold an auction at the date set by the Bankruptcy Court. This process is expected to last approximately 60 days, and until the sale is consummated, HPS will continue to operate independently with its existing management in place.
After the sale is approved by the Bankruptcy Court and consummated, HPS will work with the purchaser to address the structure of the combined organizations, with the primary objective to continue to provide superior product, service and technology offerings in a cost-effective way.
About Hess Print Solutions
Hess Print Solutions is a client-centric, solutions focused and results-driven print performance partner. The Hess Print Solutions team of print experts shares an unrelenting focus on client success, an inventive spirit and a commitment to providing measurable results. These qualities - and unparalleled print production, mailing and fulfillment solutions - help clients drive top-line revenue and growth. Additional company information is available at www.hessprintsolutions.com.
About Bang Printing
Bang Printing specializes in one to four color printing including digital, traditional web and sheetfed for both the commercial and book manufacturing markets. Established in 1899 in Brainerd, Minnesota, Bang Printing has over 100 years of experience in the printing market. In addition to press capabilities, Bang Printing has extensive in-house bindery capabilities including case (smythe, adhesive and library), perfect, saddle stitch and mechanical bindings. Currently, Bang Printing has sales, manufacturing and fulfillment facilities in Minnesota and California, offering an extensive product line to customers nationwide. Additional company information is available at www.bangprinting.com.