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KKR acquisition of Jostens, Von Hoffman, Arcade to be funded with bank, bond deals
By Sara Rosenberg
New York, July 21 - Kohlberg Kravis Roberts & Co.'s $2.2 billion acquisition of Jostens Inc., Von Hoffman Corp. and Arcade Marketing is expected to be financed in part by a new credit facility and a new bond offering, according to a market source.
The source called both debt transactions "probably post-Labor Day business."
And, although mandates haven't gone out yet, some expect that Credit Suisse First Boston will be involved in the debt transactions in some way, the source added.
The transaction will include KKR's acquisition of Von Hoffmann and Arcade from DLJ Merchant Banking Partners and the contribution of Von Hoffmann and Arcade to Jostens Holdings in exchange for stock of Jostens Holdings, which will then be recapitalized.
KKR and DLJ Merchant Banking will each own a 45% stake of Jostens Holdings upon completion of these transactions. Jostens Holdings will be renamed. The remaining 10% stake of Jostens Holdings will be held by the management team and a small group of existing minority investors.
The new company will be well capitalized and consist of three operating companies, each with its own strong brand identity, market strategy, and customer relationships, a KKR news release said.
The transactions are expected to close this fall and are subject to customary closing conditions.
Jostens is a Minneapolis provider of yearbooks, class rings and graduation products. Von Hoffman is a St. Louis printer of educational textbooks and supplemental materials and direct marketing print services. Arcade is a New York printer and manufacturer of sampling products for the fragrance, cosmetics, consumer products, and food and beverage industries.
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