Moore Corp. Launches Offer to Buy Wallace Computer for $1.3 Billion
NEW YORK — Moore Corp. launched a tender offer Sunday to acquire Wallace Computer Services for $1.3 billion, pushing for a deal after Wallace rejected a merger proposal earlier this year.
In a letter to Wallace Computer officials, Moore, a leading business forms manufacturer, said it will offer to purchase all outstanding common stock of Wallace for $56 a share, or $1.3 billion in cash.
The price represents an 84% premium over Wallace’s stock price on Feb. 24, when Moore first contacted Wallace Computer about a merger, said Moore Chairman and Chief Executive Reto Braun, in the letter.
“The board of directors and management of Moore Corp. believe the combination of our two companies makes eminent business sense,” Braun said. “Unfortunately, your board specifically rejected our proposal to discuss a strategic business combination. We therefore felt we had no choice but to proceed with an offer directly to your shareholders.”
The combined company would be the leading supplier of business forms to Fortune 1000 companies, Braun said.
Wallace Computer’s shares closed Friday at $44, up $1.125 on the New York Stock Exchange. Moore’s shares closed at $22.875, down 25 cents on the NYSE.
Wallace Computer, based in Hillside, Ill., employs 3,400 people and had sales of $180.1 million in the fiscal third quarter ended May 31. Moore, based in Toronto, has 20,000 employees and reported sales of $630 million in the second quarter.
