By: E&P Staff
Baldwin Technology Co. Inc. said Wednesday that it is immediately implementing an integration and corporate restructuring plan for its recently acquired Oxy-Dry business and some existing Baldwin operations will cost approximately $4.6 million.
“Because Oxy-Dry’s business has been slower than expected, plans for the restructuring and integration of Baldwin and Oxy-Dry were initiated immediately following the acquisition last month,” Chairman and CEO Gerald A. Nathe said in a statement. “We expect to substantially complete implementation of these plans before the end of our current fiscal year ending June 30, 2007. We believe that the full impact of the savings will be achieved in Baldwin’s fiscal 2008.”
Baldwin, a manufacturer of printing press accessories and control equipment, said it would record $1.0 million of that as a pre-tax charge in its second quarter ending Dec. 31, 2006.
Another $3.0 million will be recorded as liabilities in the company’s allocation of purchase price in connection with the acquisition, Baldwin said. The balance will be charged as incurred during the remainder of Baldwin’s 2007 and 2008 fiscal years.
Baldwin said it estimates net savings from the restructuring and integration plan will amount to about $3.7 million annually — mostly from reduced employment and consolidation of facilities in the Americas and Europe.
Baldwin acquired the Oxy-Dry group of companies last month for $18 million in cash.