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Banta Corporation

Banta Corporation

225 Main Street
Box 8003
Menasha, Wisconsin 54952-8003
U.S.A.
Telephone: (920) 751-7777
Toll Free: (800) 291-1171
Fax: (920) 751-7790
Web site: http://www.banta.com

Public Company
Incorporated:
1901 as George Banta Printing Company
Employees: 8,500
Sales: $1.54 billion (2005)
Stock Exchanges: New York
Ticker Symbol: BN
NAIC: 323110 Commercial Lithographic Printing; 323117 Books Printing; 541430 Graphic Design Services; 323119 Other Commercial Printing

Banta Corporation, one of the nation's largest printing and digital imaging companies, literally started in a small-town Wisconsin dining room in 1886. From its humble beginnings, Banta grew to become a technologically advanced, multifaceted reproducer of a wide variety of information, from small-run periodicals to educational and popular books to catalogs and direct marketing materials. Keeping pace with technology changes, Banta added software and services for managing digital content, online publishing, electronic commerce, and web site hosting and maintenance. By the late 1990s, Banta had acquired a diverse array of printing and digital imaging companies, reported sales of more than $1.3 billion, and maintained 33 production facilities in the United States and five in Europe located in Ireland, Scotland, and The Netherlands. Banta also diversified, entering into comprehensive supply chain management, from document printing through delivery to the end user, mainly for U.S. and European manufacturers of computer hardware and software. In the new century, Banta sold one of its other non-printing ventures, a healthcare products business, which made and distributed single-use healthcare products, such as examination gowns and dental bibs, and foodservice products, such as table covers and disposable bibs. The company intended to focus on its printing services and supply-chain management business, the latter an important driver of new growth for Banta.

FROM HUMBLE BEGINNINGS TO PIONEERING PRINTER

In the 1880s, company founder George Banta was a traveling agent for Phoenix Fire Insurance, based in Menasha, Wisconsin, some 80 miles north of Milwaukee. Banta was also a printing buff and, much to the distress of his new bride, Nellie, he brought a printing press into the only room in their house big enough to accommodate it. Two years, one house, and one baby later, Nellie Banta insisted on evicting the press to a shed built in the backyard. George bought a noisy gasoline engine to run the press and also hired one full-time worker for the tiny operation whose main business consisted of printing his insurance forms.

After a fire in 1901 burned down the shed, Banta moved his equipment to a Main Street store front, added a platen job press, and incorporated the business as George Banta Printing Company, with the purpose of "engaging in the business of job and newspaper printing, bookbinding, and manufacture of books and pamphlets." Two years later the corporation was renamed George Banta Publishing Company. The strain of running the shop along with his insurance job took its toll on George Banta, who had a history of malaria and lung problems. In 1904 his doctors ordered him West to recuperate. To save their business, Nellie stayed behind in Menasha and took over as manager. She proved a determined and effective entrepreneur. Meanwhile, George, who had been a Phi Delta Theta member at Indiana University and remained active in the fraternity's national organization, landed a contract to print the Phi Delta magazine, and in time also signed up a number of other fraternities and sororities.

George's educational contactshis father was dean of the Indiana University law schoolhelped the company win orders for university catalogs and annuals, as well as some textbooks and magazines. Thus, Banta Publishing grew mainly as a specialist in book and periodical printing. Not that it turned away commercial customers; in its early days, it regularly printed large-volume promotional booklets for Quaker Oats. In 1910 Banta was ready for its own building, a two-story plant just across the Fox River. These facilities, vastly enlarged over the decades, remained the site of Banta Company's offices, the largest division of Banta Corporation, and a complex of printing facilities into the late 1990s.

In 1911, 18-year-old George Banta, Jr., dropped out of college and assumed charge of the office. The replacement of Nellie was somewhat brusque, wrote Appleton Post-Crescent contributor Kay Roberts, but while the "Founder's wife" reminisced that she "missed the five dollars a week she earned," she also maintained she had much to attend to at home and "left with few regrets." George, Sr., while periodically bothered by health problems, continued to be a major sales contributor and retained overall leadership as president until his death in 1935 at age 76. Nellie then assumed the presidency until she died in her 86th year in 1951.

The company continued to grow, with emphasis on the educational market. As a historical review in the 1990 annual report noted, Banta was emphatic on keeping "pace with technological change." However, "rather than attempting to serve many markets, the company focused initially on ones in which it could build special strengths and capabilities." Even though the company consistently ranked among the top five U.S. printers in the 1980s and 1990s, Banta liked to concentrate on numerous niche businesses and sought to be the leader or a strong contender in each market it entered.

By the onset of World War I, Banta was printing 184 scholarly, technical, and educational journals. The war years brought a harsher climate which lasted into the early 1920s, but then, as the decade progressed, Banta benefited from an "explosion in education." By the end of the decade, Banta found itself in the right place for an innovative concept. One of George, Jr.'s brothers-in-law, Russell Sharp, wrote an elementary school workbook and turned to Banta to produce it. The company soon became the leader in printing workbooks as these softcover scholastic aids became a major educational tool from first grade through graduate school. Eventually this expertise helped make Banta a leader in softcover books for the professional market as well as for "trade" books (general interest books sold through bookstores).

Always technically progressive, Banta acquired its first web offset press in 1940. In the early days, the prevailing state of the art in paper, platemaking, ink, and other printing supplies limited the jobs considered suitable for offset. Banta became a pioneer in pushing development of improved supplies as well as speedier and higher-quality presses. As web offset developed into the printing method of choice for many applications, the expanding Banta Company established itself as a major player in the industry.

COMPANY PERSPECTIVES

Banta's growth strategy is focused and powerful: Drive Growth in our two business sectors by expanding value-added services, and pursuing acquisitions and alliances in our higher growth print, literature management and supply-chain management businesses.

In 1946 Banta expanded beyond its home complex with the 42,000-square-foot Midway plant, built halfway between downtown Menasha and nearby Appleton. Even as it kept expanding its printing business, the company contracted its name, dropping the "Publishing" to become George Banta Company, Inc. in 1954. The streamlined name also eliminated possible confusion about Banta's role: it did the production work for books and periodicals, while publishers (who create and market books) were its customers.

PRESSING FORWARD VIA ACQUISITIONS

Banta, which did barely $3.5 million in business at the end of World War II and $10 million in the mid-1950s, attained $33 million in sales by 1968. Family leadership had been interrupted in 1961 when John H. Wilterding, who had started at Banta in 1923, succeeded George Banta, Jr., as president. On Wilterding's retirement in 1965, however, George Banta III, the son of George, Jr., took over. Conglomeration had become the fashion throughout American enterprise, and the printing industry was no exception. George III related: "We had many beautiful offers to sell out but we decided to remain independent." Banta set out to prepare itself for the new order. In 1968 it brought in Menasha-born Kimberly Clark executive William H. Fieweger as president, with George Banta III as chairman, a post he retained until his retirement in 1983.

Within a year, the Banta-Fieweger team had the company's first long-range expansion plan ready, based on the recognition that the industry was "becoming increasingly capital intensive" and hence required "larger economic units." The Banta plan aimed to: continue internal growth, "notably from educational sources"; acquire selected small firms to promote expansion; and encourage technological advancement not just by buying new equipment, but by innovating new methods and directions. The acquisition program began in 1969 with the $2.4 million purchase of Daniels Packaging of Rhinelander, Wisconsin, which specialized in producing foil and flexible film wrap for food and other grocery products. Somewhat ironically, this first acquisition also became the first major unit disposed of by Banta; in 1989 the greatly expanded Daniels was sold for an after-tax gain of $9.6 million.

In 1970, Banta added periodicals printer Hart Press of Minnesota and Menasha neighbor Northwestern Engraving, which prepared color separations for printers and for whom Banta had been a major customer. These acquisitions along with internal growth boosted Banta sales volume above $50 million for the first time. In March 1971 Banta was ready to go public, selling 455,000 shares (a 29 percent interest) at $12.50 per share. Over the next two-and-a-half decades, the share value multiplied more than 25-fold.

KEY DATES

1901:
George Banta incorporates his printing business as George Banta Printing Company.
1903:
Company is renamed George Banta Publishing Company.
1910:
A two-story plant is completed in Menasha.
1940:
Company purchases its first web offset press.
1946:
A 42,000-square-foot Midway Plant is completed, located midway between Menasha and Appleton.
1954:
Company's name is changed to George Banta Company, Inc.
1969:
Acquisition program begins with purchase of Daniels Packaging.
1970:
Sales reach $50 million.
1971:
Company goes public through a $5.7 million initial public offering.
1989:
Revenues surpass the half-billion mark; company name is streamlined to Banta Corporation.
1995:
Company acquires Cork, Ireland-based BG Turnkey Services Ltd.; revenues top the $1 billion mark for the first time.
1998:
Company's stock moves from the NASDAQ to the New York Stock Exchange.
1999:
Company restructures; large supply-chain management contract is signed.
2002:
New CEO guides company through tough economic times.
2005:
Banta Healthcare Group is sold.

Acquisitions continued through the 1970s and 1980s. Ling Products of Neenah, Wisconsin, acquired in 1973, made disposable products for the health and foodservice industries, such as examination gowns, table covers, and bibs. KCS Industries of Milwaukee, purchased in 1975, produced point-of-sale displays. Moreover, R.J. Carroll of Harrisonburg, Virginia, bought in 1976 and later named Banta Harrisonburg, provided Eastern production facilities for Banta's basic education-oriented business. Banta's most important acquisition came in 1988, under the leadership of Chairman and CEO Harry W. Earle, when Minnesota-based Beddor Companies joined the fold. The move increased Banta's size by about two-thirds and put it into consumer catalogs and direct mail materials, among the fastest growing segments of retail merchandising. It also added to Banta's softcover capacity through printer Viking Press of Minneapolis (no relation to the well-known New York publisher Viking). The merger pushed sales above the half-billion mark in 1989 and brought Banta into the Fortune 500. At the same time, Banta further streamlined its corporate name to Banta Corporation.

COMMITTED TO PRINT

Acquisitions of "high-quality" companies remained high on the Banta agenda in the 1990s. Thus, in 1994, Banta added Danbury Printing and Litho of Connecticut, augmenting its capabilities in the direct marketing industry with a strategic manufacturing facility in the Northeast. Another 1994 acquisition was United Graphics of Kent, Washington, which gave Banta a second western printing plant to complement its Utah facility, Bushman Press, acquired in 1991. Through the United Graphics purchase, Banta also added software giant Microsoft Corporation to its already broad roster of top-level computer industry customers. Donald D. Belcher came to Banta as president in the fall of 1994 from office supplier Avery Dennison and took over the chairmanship and CEO position from retiring Calvin Aurand, Jr., in 1995.

All told, Banta added 23 companies during the first quarter century of its acquisition policy. Banta succeeded in obtaining strong growth from companies following their acquisition, which meshed into its overall plan for "aggressive and profitable growth" from internally developed new products and services.

Banta organized its many acquisitions into several product groups that operated as largely autonomous enterprises, an approach the company believed would make them "quicker, more nimble, and better able to respond to customer needs." The three largest groups in the mid-1990s, each with a little over one-fifth of total volume, were the Book, Catalog, and Direct Marketing units. The Banta Book Group handled both educational and general books, and also produced instructional games such as "Trivial Pursuit," a game wildly popular in the mid-1980s.

The Publications Group, which accounted for about one-eighth of total volume, put out more than 500 educational, trade, religious, and fraternal magazines with circulation mostly in the 15,000-to-350,000 range. Niche-conscious Banta specialized in this type of periodical rather than large-scale consumer magazines "because they are less subject to cyclical variation in number of advertising pages; also because regular planned growth is easier to achieve, since each new periodical adds only modestly to sales." Smaller groups were the Banta Digital Group, Information Services, and the more specialized KCS (signs, displays, etc.) and Ling (single-use products) units.

Banta planned to stay strong in the 1990s, noted Belcher, by "investing ahead of the curve in new technologies." Between 1990 and 1994, Banta reinvested $265 million in its operations, $87 million in 1994 alone. Such a figure represented around 10 percent of revenues, more than double the industry average. Capital acquired in the early 1990s included a $20 million printing press whose wide web permitted the printing of 50 percent more pages across the web of paper while running at nearly 50 percent greater speed. In another plant, a Xeikon full-color digital system printed entirely from digital information, requiring no film or plates. Other electronic and optical systems, often enhanced by proprietary software programs, sped prepress preparation and after-printing processing (addressing and distribution), enabling Banta to offer fast turnaround and highly customized service, such as catalogs or direct mail pieces with content tailored for specific recipients. Similarly, college texts could be custom-bound to match a professor's specific course curriculum.

Chairman Belcher expected Banta's core business to remain "imaging on paper," even as the design, production, and distribution processes which turned out these familiar print products were being "revolutionized by digital technologies." In addition, he predicted that a broad array of nonprint products, including CD-ROMs and "image archiving," would show proportionally faster growth than print. An example of the new kinds of jobs that were being taken on by Banta was an electronic catalog for a major business-to-business cataloger that was essentially a CD-ROM version of its printed catalog. For computer industry customers, Banta not only printed instruction manuals but provided on-demand electronic printing, duplication of floppies, diskettes, and CD-ROMs, and assembly of software kits.

NEW VENTURES

Though Banta had long expressed interest in the global market, foreign expansion had barely begun in the 1990s. In 1994 Banta established a software documentation unit in The Netherlands, which enabled domestic customers to download data for printing and distribution overseas. The following year came a much larger purchase, that of Cork, Ireland-based BG Turnkey Services Ltd. The Cork, Ireland-based company had annual sales of about $160 million and provided services to European computer industry customers similar to those offered by Banta's existing U.S. operations, including manual and promotional item printing, disk and CD-ROM duplication, software package assembly, and fulfillment. BG became part of the Banta Global Turnkey Group. Also in 1995, Banta moved into the burgeoning world of the Internet with the acquisition of New Frontiers Information Corp., a Cambridge, Massachusetts, software company specializing in the creation of online catalogs and ordering systems. Revenues for 1995 topped $1 billion for the first time.

Acquisitions continued in the late 1990s. In September 1997 Banta paid about $50.7 million in cash for the Omnia Group, a Troy, Michigan, supplier of single-use medical and dental products. The Omnia operation was merged into Banta's existing single-use products unit, which by this time was known as the Banta Healthcare Group. In October 1997 Banta acquired Greenfield Printing & Publishing Company, a printer of special interest and trade magazines based in Greenfield, Ohio, for about $21.3 million. Also in late 1997 Banta initiated a restructuring program, which entailed a $13.5 million charge and was completed in 1998. The company sold most of its KCS unit, including its point-of-purchase sign and display business; its interactive video operation; and three Banta Global Turnkey facilities in Sacramento and Irvine, California, and in Provo, Utah.

During 1998 Banta expanded into the Latin American market for the first time through the acquisition of a 30 percent interest in Morgan Impresores S.A., one of the largest printers in Chile with annual sales of about $45 million. Continuing to seek opportunities outside the United States, Banta in mid-1999 formed a joint venture with Grupo Imagen, a Queretaro, Mexico-based sheet-fed printer. During 1998 Banta made its first release of B-media, a digital content management system for storing, archiving, retrieving, and "repurposing" digital information for print or electronic distribution. In early 1999 leading educational publisher Houghton Mifflin Company selected Banta to develop two online education pilot programs to test Internet-based delivery of customized educational materials, as well as to begin development of a B-media system for the publisher that would encompass both textbook and Internet output. The company was also developing a B-commerce product which enabled Banta customers to sell and distribute their products through a web site.

Meanwhile, in January 1999 Banta signed a $100 million contract with IDG Books Worldwide, publisher of the bestselling "For Dummies" series and other trade titles. Banta committed to printing a variety of books for IDG, and also agreed to provide inventory management, order fulfillment, distribution, and returns processing. The company built a 250,000-square-foot distribution center in Harrisonburg, Virginia, which had a storage capacity for about 16 million books and was slated to be used exclusively for IDG products.

In April 1999 Banta announced a restructuring program aimed at generating annual savings of $18 million to $20 million by 2000. Underperforming facilities in Kent, Washington; Charlotte, North Carolina; and Berkeley, Illinois, were slated for closure, and 650 workers, representing about 9 percent of the overall workforce, lost their jobs. The restructuring, which resulted in a fiscal 1999 charge of about $50 million, was part of a three-part program to position Banta for the early 21st century, with the second and third parts both being partially funded through the restructuring savings. The company planned to step up its acquisitions program, as outlined by Belcher: "Recent acquisitions have boosted our technology and value-added service capabilities, and we are now accelerating our acquisition activities with the goal of aggressively growing our most profitable core print sectors and our healthcare business." The third part of the program was to continue the company's aggressive development of digital technology products, such as B-media and B-commerce.

ANOTHER HUNDRED YEARS: 2000 AND BEYOND

Banta struck a five-year deal with Compaq Computer Corp. late in 1999 to configure, test, package, and distribute hard drives and other storage components, according to a Knight Ridder/Tribune Business News article. To serve Compaq's domestic market, Banta opened a new facility in Houston. Additional facilities were planned in Asia and Europe for Compaq's international market.

Estimated at $600 million to $800 million, the ultimate value of the contract was dependent on "market demand and global production capacity," according to a Houston Business Journal article. Compaq hoped to reduce expenses and get product to customers more quickly through consolidating its distribution process with Banta, which already served Compaq in the United States and The Netherlands.

Banta's other turnkey manufacturing and distribution services clients included Microsoft, Intel, Sun Microsystems, Cisco Systems, and Dell Computer, but the new deal with Compaq raised the bar. "With Compaq, Banta graduated from supply chain management (the physical services of assembly, packaging, order fulfillment and distribution) to technology-enabled integrationtheir services and information are melded with its customer through a common information technology system," explained Joanne Zuhl in a November 1999 Knight Ridder/Tribune Business News article.

Banta's investment in facilities and technology amounted to more than $20 million in startup costs. The Banta Turnkey Group, which produced sales of about $250 million in 1998, was expected to contribute half again as much with the onset of the Compaq deal.

Even though the supply chain management end of business had made a leap forward, the printing segment of the business still was key to Banta's success. It produced an estimated 60-65 percent of total revenues for Banta about the time of the Compaq deal.

The company's book printing operation sales climbed 30 percent to $363 million in 2000. The acquisition of Southeastern Color Graphics and a strong educational publishing market helped drive the gains. But the next year, Banta's 100th anniversary, some glitches appeared on the screen. Book sales slumped for printers, including Banta and competitors Quebecor and R.R. Donnelley. All three implemented cost-cutting measures in response to the drop in demand for their services brought on by the economic downturn. In addition, Banta's investment in a dot-com business went sour, causing the printer to take an after-tax charge of about $7 million in the first quarter of 2001.

Banta President and COO Stephanie A. Streeter succeeded Belcher as CEO in 2002. Streeter, recruited by Belcher to succeed him, had come on board in January 2001: "I really credit Stephanie for the leadership role she has played since she came, " Belcher said in the Milwaukee Journal Sentinel. "She's had a responsibility for all of our operations worldwide and she has been a huge contributor in that leadership role to the positive growth and results that Banta has demonstrated in a very, very tough environment."

In 2003, Banta shut down an outdated catalog plant and reinvested in another now handling a greater workload. Banta also struck a deal with an engineering and software development company regarding the future development of B-media products, selling the intellectual property but retaining the right to market and sell the software. Two marginally performing chain-supply management operations, one in Mexico another in Ireland, were also closed.

Streeter succeeded Belcher as chairman in April 2004. Both had worked at Avery Dennison Corp. in the late 1980s to early 1990s, according to a Knight Ridder/Tribune Business News article. There Belcher observed Streeter's marketing savvy, which helped elevate her to group vice-president for worldwide office products, a $1.4 billion Avery Dennison division. In 2000, she left Avery Dennison for dot-com company Idealab! Belcher, and the board, had reason to be impressed with Streeter's performance at Banta, as well. "With printing industry prospects gloomy 16 months ago, Banta stock still outperformed its industry peers; the Dow Jones industrial average; and the S&P500. It maintained its earnings and grew its sales," Arlen Boardman explained in a May 2004 Knight Ridder/Tribune Business News article.

Among Belcher's legacy to Banta was the profitable supply-chain management operation. During his ten-year tenure, total Banta sales had climbed from $811 million to $1.4 billion, with supply chain management producing one-quarter of revenues. A significant share of those revenues came from the five-year supply-management contract with Compaq, which ultimately produced a total of about $600 million. Banta went on to earn a new deal with the computer maker. The segment also had facilitated Banta's global expansion. "Belcher joked that when he arrived in 1994, 'our most foreign operation was Mountain View, Calif.,'" wrote Boardman.

Under Belcher the company's stock price climbed by 250 percent but was still considered undervalued. Back in 1999, stock prices in the printing industry were down, as money funneled into the red-hot dot-com industry. Furthermore, the industry was hurt by predictions of its demise at the hands of the Internet revolution. Early in 2004, Banta bought back one million shares to boost its earnings per share.

In April 2005, Banta completed the sale of Banta Healthcare Group to an affiliate of Fidelity Capital Investors, Inc. for $67 million. Banta planned to tighten its focus on the printing services and supply chain management segments. The healthcare segment had produced about 7 percent of 2004 sales of $1.5 billion and 8 percent of the company's $136 million in operating income.

Meanwhile, the printing industry continued to face challenges. Over the past decade, 8,000 U.S. printing plants closed their doors, according to a February 2005 Milwaukee Journal Sentinel. An additional 4,000 to 8,000 were expected to shut down over the next ten years. Printing industry overall sales were up by less than 4 percent in 2004. But diversified Banta posted record earnings from continuing operations in the fourth quarter of 2005. "Banta had a great 2005 and an exceptional fourth quarter," Streeter said in the Post-Crescent in February 2006. "During the first half of the year we focused on investment and preparation for a strong second half of the yearand we achieved our expectations."

                             Henry R. Hecht

            Updated, David E. Salamie; Kathleen Peippo

PRINCIPAL SUBSIDIARIES

Banta Direct Marketing, Inc.; Banta Europe BV (The Netherlands); Banta Europe Corporation (The Netherlands); Banta Healthcare Group, Ltd.; Banta Global Turnkey B.V. (The Netherlands); Banta Global Turnkey Ltd. (Ireland); Banta Global Turnkey Ltd. (Scotland); Banta Packaging & Fulfillment, Inc.; Banta Specialty Converting, LLC; Danbury Printing & Litho, Inc.; Banta Integrated MediaCambridge, Inc.; United Graphics, Inc.; Wrapper, Inc.; Banta Publications-Greenfield, Inc.; Greenfield Holdings Corp.; Type Designs, Inc.; Banta Holding Corp.; Banta Global Turnkey (Singapore) Pte. Ltd.; Banta Southeastern, Inc.; Banta Finance Corporation; Banta Global TurnkeyGuadalajara Sde RL de CV; BGT ServicesGuadalajara Sde RL de CV; BGT-US, LLC; Banta Global Turnkey, Ltd.; Banta Global Turnkey Kft. (Hungary); Banta Global Turnkey, Limited (Hong Kong).

PRINCIPAL COMPETITORS

Dai Nippon Printing Co., Ltd.; Quebecor Inc.; R.R. Donnelley & Sons Company.

FURTHER READING

Bach, Pete, "Menasha, Wis.-Based Printing Firm Holds Strong in Catalog Production," Knight Ridder/Tribune Business News, January 1, 2003.

"Banta Celebrates 100 Years," American Printer, January 2002, p. 17.

"Banta Corp. Sets New Records," Post-Crescent (Appleton, Wisconsin), February 1, 2006.

"Banta Earnings Up," Journal of Commerce Online, January 26, 2005.

"Banta to Restructure in a Four-Part Plan," Graphic Arts Monthly, November 1997, p. 26.

Belcher, Donald D., Presentation on Banta Corporation to the New York Society of Security Analysts, company document, March 6, 1995.

Boardman, Arlen, "Menasha, Wis., Printing Company Names New CEO," Knight Ridder/Tribune Business News, May 23, 2004.

, "Outgoing Chief of Menasha, Wis., Printing Company Helped Firm Expand Globally," Knight Ridder/Tribune Business News, May 23, 2004.

Byrne, Harlan S., "Banta Corp. Acquisition Doubles Sales, Moves It into Fast-Growing Field," Barron's, May 29, 1989.

, "Banta Corp.: A Power of the Press," Barron's, March 20, 1995, p. 24.

Dresang, Joel, "Printers Find Growth in Niches," Milwaukee Journal Sentinel, February 21, 2005.

Elder, Laura, "Compaq Outsources Hard Drive Distribution to Wisconsin Firm," Houston Business Journal, October 29, 1999, p. 6A.

Hawkins, Lee, Jr., "Banta Shedding Parts of KCS: Firm to Close Printing Operation at Milwaukee Plant, Sell Display Business As Part of Restructuring Plan," Milwaukee Journal Sentinel, September 27, 1997.

, "Menasha-Based Banta Corp. Lands $100 Million Publishing Contract," Milwaukee Journal Sentinel, January 28, 1999.

, "Menasha, Wis.-Based Printing Company Names New President, CEO," Milwaukee Journal Sentinel, August 29, 2002.

, "Menasha, Wis.-Based Printing Firm Banta Corp. to Lay Off 650 Workers," Milwaukee Journal Sentinel, April 13, 1999.

Joshi, Pradnya, "Banta Acquires Software Company," Milwaukee Journal Sentinel, October 10, 1995.

Key, Peter, "Digital Printer Runs Out of Cash, Files Chap.11," Philadelphia Business Journal, April 20, 2001, p. 3.

Matzek, MaryBeth, "Banta Healthcare Sold for $67 Million," Knight Ridder/Tribune Business News, February 15, 2005.

Milliot, Jim, "Difficult Market Leads to Slump in Printing Sales," Publishers Weekly, February 16, 2004, p. 52.

, "Printers Report Soft Ending to Soft Year," Publishers Weekly, February 11, 2002, p. 76,

Olson, Jon, "Banta Corp. Makes Move into Europe," Milwaukee Journal Sentinel, August 29, 1995, p. D1.

, "Banta Is Making an Imprint on Wall Street," Milwaukee Journal Sentinel, September 16, 1995.

Roberts, Kay, "The Founder's Wife," Appleton (Wisc.) Post-Crescent, February 4, 1979.

"Sales Up at Banta, Donnelley," Publishers Weekly, April 23, 2001, p. 17.

"Short and Sweet: Banta Digital Services Uses Digital Press Technology to Develop the On-Demand Print Market," American Printer, September 1995, pp. 36-38.

Stapel, Jeff, and Lorrie Potash, "Banta90 Years of Growth," Banta Company Magazine, 1991, pp. 18-20.

Zuhl, Joanne, "Compaq Deal Gives Menasha, Wis.-Based Computer Firm New Dimension," Knight Ridder/Tribune Business News, November 24, 1999.

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Banta Corporation

Banta Corporation

225 Main Street
Box 8003
Menasha, Wisconsin 54952-8003
U.S.A.
Telephone: (920) 751-7777
Fax: (920) 751-7790
Web site: http://www.banta.com

Public Company
Incorporated:
1901 as George Banta Printing Company
Employees: 7,000
Sales: $1.34 billion (1998)
Stock Exchanges: New York
Ticker Symbol: BN
NAIC: 323110 Commercial Lithographic Printing; 323115 Digital Printing; 323117 Book Printing; 323122 Prepress Services; 339110 Medical Equipment and Supplies Manufacturing; 541430 Graphic Design Services; 541511 Custom Computer Programming Services

Banta Corporation, one of the nations largest printing and digital imaging companies, literally started in a small-town Wisconsin dining room in 1886. From its humble beginnings, Banta grew to become a technologically advanced, multifaceted reproducer of a wide variety of information, from small-run periodicals to educational and popular books to catalogs and direct marketing materials, with these activities conducted by Bantas Book, Catalog, Direct Marketing, Information Services, and Publications Groups. Among the products and services offered by the companys Digital Services Group are software and services for managing digital content, online publishing, electronic commerce, and web site hosting and maintenance. The Global Turnkey Group is involved in comprehensive supply chain management, from document printing through delivery to the end user, mainly for U.S. and European manufacturers of computer hardware and software. The Healthcare Products Group makes and distributes single-use healthcare products, such as examination gowns and dental bibs, and foodservice products, such as table covers and disposable bibs. By the late 1990s, Banta had acquired a diverse array of printing and digital imaging companies, reported sales of more than $1.3 billion, and maintained 33 production facilities in the United States and five in Europe located in Ireland, Scotland, and the Netherlands.

From Humble Beginnings to Pioneering Printer

In the 1880s, company founder George Banta was a traveling agent for Phoenix Fire Insurance, based in Menasha, Wisconsin, some 80 miles north of Milwaukee. Banta was also a printing buff and, much to the distress of his new bride, Nellie, he brought a printing press into the only room in their house big enough to accommodate it. Two years, one house, and one baby later, Nellie Banta insisted on evicting the press to a shed built in the backyard. George bought a noisy gasoline engine to run the press and also hired one full-time worker for the tiny operation whose main business consisted of printing his insurance forms.

After a fire in 1901 burned down the shed, Banta moved his equipment to a Main Street store front, added a platen job press, and incorporated the business as George Banta Printing Company, with the purpose of engaging in the business of job and newspaper printing, bookbinding, and manufacture of books and pamphlets. Two years later the corporation was renamed George Banta Publishing Company. The strain of running the shop along with his insurance job took its toll on George Banta, who had a history of malaria and lung problems. In 1904 his doctors ordered him West to recuperate. To save their business, Nellie stayed behind in Menasha and took over as manager. She proved a determined and effective entrepreneur. Meanwhile, George, who had been a Phi Delta Theta member at Indiana University and remained active in the fraternitys national organization, landed a contract to print the Phi Delta magazine, and in time also signed up a number of other fraternities and sororities.

Georges educational contactshis father was dean of the Indiana University law schoolhelped the company win orders for university catalogs and annuals, as well as some textbooks and magazines. Thus, Banta Publishing grew mainly as a specialist in book and periodical printing. Not that it turned away commercial customers; in its early days, it regularly printed large-volume promotional booklets for Quaker Oats. In 1910 Banta was ready for its own building, a two-story plant just across the Fox River. These facilities, vastly enlarged over the decades, remained the site of Banta Companys offices, the largest division of Banta Corporation, and a complex of printing facilities into the late 1990s.

In 1911, 18-year-old George Banta, Jr., dropped out of college and assumed charge of the office. The replacement of Nellie was somewhat brusque, wrote Appleton Post-Crescent contributor Kay Roberts, but while the Founders wife reminisced that she missed the five dollars a week she earned, she also maintained she had much to attend to at home and left with few regrets. George, Sr., while periodically bothered by health problems, continued to be a major sales contributor and retained overall leadership as president until his death in 1935 at age 76. Nellie then assumed the presidency until she died in her 86th year in 1951.

The company continued to grow, with emphasis on the educational market. As a historical review in the 1990 annual report noted, Banta was emphatic on keeping pace with technological change. However, rather than attempting to serve many markets, the company focused initially on ones in which it could build special strengths and capabilities. Even though the company consistently ranked among the top five U.S. printers in the 1980s and 1990s, Banta liked to concentrate on numerous niche businesses and sought to be the leader or a strong contender in each market it entered.

By the onset of World War I, Banta was printing 184 scholarly, technical, and educational journals. The war years brought a harsher climate which lasted into the early 1920s, but then, as the decade progressed, Banta benefited from an explosion in education. By the end of the decade, Banta found itself in the right place for an innovative concept. One of George, Jr.s brothers-in-law, Russell Sharp, wrote an elementary school workbook and turned to Banta to produce it. The company soon became the leader in printing workbooks as these softcover scholastic aids became a major educational tool from first grade right up through graduate school. Eventually this expertise helped make Banta a leader in softcover books for the professional market as well as for trade books (general interest books sold through bookstores).

Always technically progressive, Banta acquired its first web offset press in 1940. In the early days, the prevailing state of the art in paper, platemaking, ink, and other printing supplies limited the jobs considered suitable for offset. Banta became a pioneer in pushing development of improved supplies as well as speedier and higher-quality presses. As web offset developed into the printing method of choice for many applications, the expanding Banta Company established itself as a major player in the industry.

In 1946 Banta expanded beyond its home complex with the 42,000-square-foot Midway plant, built halfway between downtown Menasha and nearby Appleton. Even as it kept expanding its printing business, the company contracted its name, dropping the Publishing to become George Banta Company, Inc. in 1954. The streamlined name also eliminated possible confusion about Bantas role: it did the production work for books and periodicals, while publishers (who create and market books) were its customers.

Late 1960s Through 1980s: Pressing Forward Via Acquisitions

Banta, which did barely $3.5 million in business at the end of World War II and $10 million in the mid-1950s, attained $33 million in sales by 1968. Family leadership had been interrupted in 1961 when John H. Wilterding, who had started at Banta in 1923, succeeded George Banta, Jr., as president. On Wilterdings retirement in 1965, however, George Banta III, the son of George, Jr., took over. Conglomeration had become the fashion throughout American enterprise, and the printing industry was no exception. George III related: We had many beautiful offers to sell out . .. but we decided to remain independent. Banta set out to prepare itself for the new order. In 1968 it brought in Menasha-born Kimberly Clark executive William H. Fieweger as president, with George Banta III as chairman, a post he retained until his retirement in 1983.

Within a year, the Banta-Fieweger team had the companys first long-range expansion plan ready, based on the recognition that the industry was becoming increasingly capital intensive and hence required larger economic units. The Banta plan aimed to: continue internal growth, notably from educational sources; acquire selected small firms to promote expansion; and encourage technological advancement not just by buying new equipment, but by innovating new methods and directions. The acquisition program began in 1969 with the $2.4 million purchase of Daniels Packaging of Rhinelander, Wisconsin, which specialized in producing foil and flexible film wrap for food and other grocery products. Somewhat ironically, this first acquisition also became the first major unit disposed of by Banta; in 1989 the greatly expanded Daniels was sold for an after-tax gain of $9.6 million.

Company Perspectives:

Succeeding in the Information Age requires more than keeping pace. The most successful companies look to the future and apply cutting-edge technologies that put them a step ahead. Banta Corporation offers an extraordinary suite of innovative, world-class capabilities that streamline the capture, management and distribution of print and digital information. We improve clients competitiveness by providing solutions that help them deliver information in a variety of print and electronic formats, at ever-faster speeds and at lower costs.

In 1970, Banta added periodicals printer Hart Press of Minnesota and Menasha neighbor Northwestern Engraving, which prepared color separations for printers and for whom Banta had been a major customer. These acquisitions along with internal growth boosted Banta sales volume above $50 million for the first time. In March 1971 Banta was ready to go public, selling 455,000 shares (a 29 percent interest) at $12.50 per share. Over the next two-and-a-half decades, the share value multiplied more than 25-fold.

Acquisitions continued through the 1970s and 1980s. Ling Products of Neenah, Wisconsin, acquired in 1973, made disposable products for the health and foodservice industries, such as examination gowns, table covers, and bibs. KCS Industries of Milwaukee, purchased in 1975, produced point-of-sale displays. Moreover, R.J. Carroll of Harrisonburg, Virginia, bought in 1976 and later named Banta Harrisonburg, provided Eastern production facilities for Bantas basic education-oriented business. Bantas most important acquisition came in 1988, under the leadership of chairman and CEO Harry W. Earle, when Minnesota-based Beddor Companies joined the fold. The move increased Bantas size by about two-thirds and put it into consumer catalogs and direct mail materials, among the fastest growing segments of retail merchandising. It also added to Bantas softcover capacity through printer Viking Press of Minneapolis (no relation to the well-known New York publisher Viking). The merger pushed sales above the half-billion mark in 1989 and brought Banta into the Fortune 500. At the same time, Banta further streamlined its corporate name to Banta Corporation.

1990s and Beyond

Acquisitions of high-quality companies remained high on the Banta agenda in the 1990s. Thus, in 1994, Banta added Danbury Printing and Litho of Connecticut, augmenting its capabilities in the direct marketing industry with a strategic manufacturing facility in the Northeast. Another 1994 acquisition was United Graphics of Kent, Washington, which gave Banta a second western printing plant to complement its Utah facility, Bushman Press, acquired in 199L Through the United Graphics purchase, Banta also added software giant Microsoft Corporation to its already broad roster of top-level computer industry customers. Donald D. Belcher came to Banta as president in the fall of 1994 from office supplier Avery Dennison and took over the chairmanship and CEO position from retiring Calvin Aurand, Jr., in 1995.

All told, Banta added 23 companies during the first quarter century of its acquisition policy. Banta succeeded in obtaining strong growth from companies following their acquisition, which meshed into its overall plan for aggressive and profitable growth from internally developed new products and services.

Banta organized its many acquisitions into several product groups that operated as largely autonomous enterprises, an approach the company believed would make them quicker, more nimble, and better able to respond to customer needs. The three largest groups in the mid-1990s, each with a little over one-fifth of total volume, were the Book, Catalog, and Direct Marketing units. The Banta Book Group handled both educational and general books, and also produced instructional games such as Trivial Pursuit, a game wildly popular in the mid-1980s.

The Publications Group, which accounted for about one-eighth of total volume, put out more than 500 educational, trade, religious, and fraternal magazines with circulation mostly in the 15,000-to-350,000 range. Niche-conscious Banta specialized in this type of periodical rather than large-scale consumer magazines because they are less subject to cyclical variation in number of advertising pages; also because regular planned growth is easier to achieve, since each new periodical adds only modestly to sales. Smaller groups were the Banta Digital Group, Information Services, and the more specialized KCS (signs, displays, etc.) and Ling (single-use products) units.

Banta planned to stay strong in the 1990s, noted Belcher, by investing ahead of the curve in new technologies. Between 1990 and 1994, Banta reinvested $265 million in its operations, $87 million in 1994 alone. Such a figure represented around ten percent of revenues, more than double the industry average. Capital acquired in the early 1990s included a $20 million printing press whose wide web permitted the printing of 50 percent more pages across the web of paper while running at nearly 50 percent greater speed. In another plant, a Xeikon full-color digital system printed entirely from digital information, requiring no film or plates. Other electronic and optical systems, often enhanced by proprietary software programs, sped prepress preparation and after-printing processing (addressing and distribution), enabling Banta to offer fast turnaround and highly customized service, such as catalogs or direct mail pieces with content tailored for specific recipients. Similarly, college texts could be custom-bound to match a professors specific course curriculum.

Key Dates:

1901:
George Banta incorporates his printing business as George Banta Printing Company.
1903:
Company is renamed George Banta Publishing Company.
1910:
A two-story plant is completed in Menasha.
1940:
Company purchases its first web offset press.
1946:
42,000-square-foot Midway Plant is completed, located midway between Menasha and Appleton.
1954:
Companys name is changed to George Banta Company, Inc.
1969:
Acquisition program begins with purchase of Daniels Packaging.
1970:
Sales reach $50 million.
1971:
Company goes public through a $5.7 million initial public offering.
1989:
Revenues surpass the half-billion mark; company name is streamlined to Banta Corporation.
1995:
Company acquires Cork, Ireland-based BG Turnkey Services Ltd.; revenues top the $1 billion mark for the first time.
1998:
Companys stock moves from the NASDAQ to the New York Stock Exchange.
1999:
A restructuring is initiated, resulting in the elimination of 650 jobs and the closure of three facilities.

Chairman Belcher expected Bantas core business to remain imaging on paper, even as the design, production, and distribution processes which turned out these familiar print products were being revolutionized by digital technologies. In addition, he predicted that a broad array of nonprint products, including CD-ROMs and image archiving, would show proportionally faster growth than print. An example of the new kinds of jobs that were being taken on by Banta was an electronic catalog for a major business-to-business cataloger that was essentially a CD-ROM version of its printed catalog. For computer industry customers, Banta not only printed instruction manuals but provided on-demand electronic printing, duplication of floppies, diskettes, and CD-ROMs, and assembly of software kits.

Though Banta had long expressed interest in the global market, foreign expansion had barely begun in the 1990s. In 1994 Banta established a software documentation unit in the Netherlands, which enabled domestic customers to download data for printing and distribution overseas. The following year came a much larger purchase, that of Cork, Ireland-based BG Turnkey Services Ltd. The Cork, Ireland-based company had annual sales of about $160 million and provided services to European computer industry customers similar to those offered by Bantas existing U.S. operations, including manual and promotional item printing, disk and CD-ROM duplication, software package assembly, and fulfillment. BG became part of the Banta Global Turnkey Group. Also in 1995, Banta moved into the burgeoning world of the Internet with the acquisition of New Frontiers Information Corp., a Cambridge, Massachusetts, software company specializing in the creation of online catalogs and ordering systems. Revenues for 1995 topped $1 billion for the first time.

Acquisitions continued in the late 1990s. In September 1997 Banta paid about $50.7 million in cash for the Omnia Group, a Troy, Michigan, supplier of single-use medical and dental products. The Omnia operation was merged into Bantas existing single-use products unit, which by this time was known as the Banta Healthcare Group. In October 1997 Banta acquired Greenfield Printing & Publishing Companya printer of special interest and trade magazines based in Greenfield, Ohiofor about $21.3 million. Also in late 1997 Banta initiated a restructuring program, which entailed a $13.5 million charge and was completed in 1998. The company sold most of its KCS unit, including its point-of-purchase sign and display business; its interactive video operation; and three Banta Global Turnkey facilities in Sacramento and Irvine, California, and in Provo, Utah.

During 1998 Banta expanded into the Latin American market for the first time through the acquisition of a 30 percent interest in Morgan Impresores S.A., one of the largest printers in Chile with annual sales of about $45 million. Continuing to seek opportunities outside the United States, Banta in mid-1999 formed a joint venture with Grupo Imagen, a Queretaro, Mexico-based sheet-fed printer. During 1998 Banta made its first release of Bzmedia, a digital content management system for storing, archiving, retrieving, and repurposing digital information for print or electronic distribution. In early 1999 leading educational publisher Houghton Mifflin Company selected Banta to develop two online education pilot programs to test Internet-based delivery of customized educational materials, as well as to begin development of a Bzmedia system for the publisher that would encompass both textbook and Internet output. The company was also developing a Bzcommerce electronic-commerce product which enabled Banta customers to sell and distribute their products through a web site.

Meanwhile, in January 1999 Banta signed a $100 million contract with IDG Books Worldwide, publisher of the bestselling For Dummies series and other trade titles. Banta committed to printing a variety of books for IDG, and also agreed to provide inventory management, order fulfillment, distribution, and returns processing. The company built a 250,000-square-foot distribution center in Harrisburg, Virginia, which had a storage capacity for about 16 million books and was slated to be used exclusively for IDG products.

In April 1999 Banta announced a restructuring program aimed at generating annual savings of $18-$20 million by 2000. Underperforming facilities in Kent, Washington; Charlotte, North Carolina; and Berkeley, Illinois, were slated for closure, and 650 workers, representing about nine percent of the overall workforce, lost their jobs. The restructuring, which resulted in a fiscal 1999 charge of about $50 million, was part of a three-part program to position Banta for the early 21st century, with the second and third parts both being partially funded through the restructuring savings. The company planned to step up its acquisitions program, as outlined by Belcher: Recent acquisitions have boosted our technology and value-added service capabilities, and we are now accelerating our acquisition activities with the goal of aggressively growing our most profitable core print sectors and our healthcare business. The third part of the program was to continue the companys aggressive development of digital technology products, such as Bzmedia and Bzcommerce.

Principal Subsidiaries

Banta Direct Marketing, Inc.; Banta Europe Corp. (Ireland); Banta Healthcare Products, Inc.; Banta Security Printing, Inc.; Banta Global Turnkey B.V. (Netherlands); Banta Global Turnkey France; Banta Global Turnkey Limited (Ireland); Banta Global Turnkey Limited (Scotland); Banta Packaging & Fulfillment, Inc.; Banta Software Services International, Inc.; Banta Specialty Converting, Inc.; Danbury Printing & Litho, Inc.; KnowledgeSet Corporation; New Frontiers Information Corporation; One Pass Network, Inc.; United Graphics Inc.; Wrapper, Inc.; Banta Publications-Greenfield, Inc.; Cidex International, Inc.; Banta Direct Marketing-Berkeley, Inc.; Omnia I, Inc.; Tidi Products, Inc.; Meadows Information Systems, Inc.; Greenfield Holdings Corp.; Banta Cayman Islands Corp. (Cayman Islands); Type Designs, Inc.; Ad Run Around, Inc.; Banta Ireland Corp.; Turnkey Services Holding Corp.; Banta Holding Corp.

Principal Operating Units

Book Group; Catalog Group; Digital Group; Direct Marketing Group; Global Turnkey Group; Healthcare Group; Information Services Group; Publications Group.

Principal Competitors

Anderson Lithograph Company; Berlin Industries Inc.; Big Flower Holdings, Inc.; Champion Industries, Inc.; Consolidated Graphics, Inc.; Courier Corporation; Dai Nippon Printing Co., Ltd.; Hart Graphics, Inc.; Mail-Well, Inc.; Quad/Graphics, Inc.; Quebecor Printing Inc.; R.R. Donnelley & Sons Company; Tufco Technologies, Inc.

Further Reading

Banta to Restructure in a Four-Part Plan, Graphic Arts Monthly, November 1997, p. 26.

Belcher, Donald D., Presentation on Banta Corporation to the New York Society of Security Analysts, company document, March 6, 1995.

Byrne, Harlan S., Banta Corp. Acquisition Doubles Sales, Moves It into Fast-Growing Field, Barrons, May 29, 1989.

, Banta Corp.: A Power of the Press, Barrons, March 20, 1995, p. 24.

Hawkins, Lee, Jr., Banta Shedding Parts of KCS: Firm to Close Printing Operation at Milwaukee Plant, Sell Display Business As Part of Restructuring Plan, Milwaukee Journal Sentinel, September 27, 1997.

, Menasha-Based Banta Corp. Lands $100 Million Publishing Contract, Milwaukee Journal Sentinel, January 28, 1999.

, Menasha, Wis.-Based Printing Firm Banta Corp. to Lay Off 650 Workers, Milwaukee Journal Sentinel, April 13, 1999.

Joshi, Pradnya, Banta Acquires Software Company, Milwaukee Journal Sentinel, October 10, 1995.

Olson, Jon, Banta Corp. Makes Move into Europe, Milwaukee Journal Sentinel, August 29, 1995, p. D1.

, Banta Is Making an Imprint on Wall Street, Milwaukee Journal Sentinel, September 16, 1995.

Roberts, Kay, The Founders Wife, Appleton (Wise.) Post-Crescent, February 4, 1979.

Short and Sweet: Banta Digital Services Uses Digital Press Technology to Develop the On-Demand Print Market, American Printer, September 1995, pp. 3638.

Stapel, Jeff, and Lorrie Potash, Banta90 Years of Growth, Banta Company Magazine, 1991, pp. 1820.

Henry R. Hecht

updated by David E. Salamie

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Banta Corporation

Banta Corporation

225 Main Street
Box 8003
Menasha, Wisconsin 54952-8003
U.S.A.
(414) 751-7777
Fax: (414) 751-7790

Public Company
Incorporated:
1901
Employees: 4,900
Sales: $811 million
Stock Exchanges: NASDAQ
SICs: 2732 Book Printing; 2759 Commercial Printing, Not
Elsewhere Classified; 2672 Coated & Laminated Paper,
Not Elsewhere Classified

Banta Corporation, one of the nations largest graphic arts and printing companies, literally started in a small-town Wisconsin dining room in 1886. From its humble beginnings, Banta grew to become a technologically-advanced, multi-faceted reproducer of a wide variety of information, from small-run periodicals to popular educational games like Trivial Pursuit to CD-ROMs and on-line documentation. By the mid-1990s, Banta had acquired a diverse array of printing and graphics companies, reported sales of $811 million, and was poised for expansion into overseas markets.

In the 1880s, company founder George Banta was a traveling agent for Phoenix Fire Insurance, based in Menasha, Wisconsin, some 80 miles north of Milwaukee. Banta was also a printing buff and, much to the distress of his new bride, Nellie, he brought a printing press into the only room in their house big enough to accommodate it. Two years, one house, and one baby later, Nellie Banta insisted on evicting the press to a shed built in the backyard. George bought a noisy gasoline engine to run the press and also hired one full-time worker for the tiny operation whose main business consisted of printing his insurance forms.

After a fire in 1901 burned down the shed, Banta moved his equipment to a Main Street store front, added a platen job press, and incorporated the business as George Banta Printing Company, with the purpose of engaging in the business of job and newspaper printing, bookbinding, and manufacture of books and pamphlets. Two years later the corporation was renamed George Banta Publishing Company. The strain of running the shop along with his insurance job took its toll on George Banta, who had a history of malaria and lung problems. In 1904 his doctors ordered him west to recuperate. To save their business, Nellie decided to stay behind in Menasha and took over as manager. She proved a determined and effective entrepreneur. Meanwhile, George, who had been a Phi Delta Theta member at Indiana University and remained active in the fraternitys national organization, landed a contract to print the Phi Delta magazine, and in time also signed up a number of other fraternities and sororities.

Georges educational contactshis father was dean of the Indiana University law schoolhelped the company win orders for university catalogs and annuals, as well as some textbooks and magazines. Thus, Banta Publishing grew mainly as a specialist in book and periodical printing. Not that it turned away commercial customers; in its early days, it regularly printed large-volume promotional booklets for Quaker Oats. In 1910 Banta was ready for its own building, a two-story plant just across the Fox River. These facilities, vastly enlarged over the decades, remained the site of Banta Companys offices, the largest division of Banta Corporation, and a complex of printing facilities into the mid-1990s.

In 1911, 18-year-old George Banta Jr. dropped out of college and assumed charge of the office. The replacement of Nellie was somewhat brusque, wrote Appleton Post-Crescent contributor Kay Roberts, and while the Founders wife reminisced that she missed the five dollars a week she earned, she also maintained she had much to attend to at home and left with few regrets. George Sr., while periodically bothered by health problems, continued to be a major sales contributor, and retained overall leadership as president until his death in 1935 at age 76. Nellie then assumed the presidency until she died in her 86th year in 1951.

The company grew nicely, with emphasis on the educational market. As a historical review in the 1990 annual report noted, Banta was emphatic on keeping pace with [technological] change. But rather than attempting to serve many markets, the company focused initially on ones in which it could build special strengths and capabilities. Even though the company consistently ranked among the top five U.S. printers in the 1980s and 1990s, Banta liked to concentrate on numerous niche businesses, and sought to be the leader or a strong contender in each market it entered.

By the time of World War I, Banta was printing 184 scholarly, technical, and educational journals. The war years brought a harsher climate which lasted into the early twenties, but then, as the decade progressed, Banta benefitted from an explosion in education. By the end of the twenties, Banta found itself in the right place for an innovative concept. One of George Jr.s brothers-in-law, Russell Sharp, wrote an elementary school workbook and turned to Banta to produce it. The company soon became the leader in printing workbooks as these softcover scholastic aids became a major educational tool from first grade right up through graduate school. Eventually this expertise helped make Banta a leader in softcover books for the professional market as well as for trade books (general-interest books sold through book stores).

Always technically progressive, Banta acquired its first web offset press in 1940. In the early days, the prevailing state of the art in paper, platemaking, ink, and other printing supplies limited the jobs considered suitable for offset. Banta became a pioneer in pushing development of improved supplies as well as speedier and higher-quality presses. As web offset developed into the printing method of choice for many applications, the expanding Banta Company established itself as a major player in the industry.

In 1946 Banta expanded beyond its home complex with the 42,000-square-foot Midway plant, built midway between downtown Menasha and nearby Appleton. Even as it kept expanding its printing business, the company contracted its name, dropping the Publishing to become George Banta Company, Inc. in 1954. The streamlined name also eliminated possible confusion about Bantas role: it did the production work for books and periodicals, while publishers (who create and market books) were its customers.

Banta, which did barely $3.5 million in business at the end of World War II and $10 million in the mid-1950s, attained $33 million sales by 1968. Family leadership had been interrupted in 1961 when John H. Wilterding, who had started at Banta in 1923, succeeded George Banta Jr. as president. However, on Wilterdings retirement in 1965, George Banta III, the son of George Jr., took over. Conglomeration had become the fashion throughout American enterprise, and the printing industry was no exception. George III related: We had many beautiful offers to sell out but we decided to remain independent. Banta set out to prepare itself for the new order. In 1968 it brought in Menasha-born Kimberly Clark executive William H. Fieweger as president, with George Banta III as chairman, a post he retained until his retirement in 1983.

Within a year, the Banta-Fieweger team had the companys first long-range expansion plan ready, based on the recognition that the industry was becoming increasingly capital intensive and hence required larger economic units. The Banta plan aimed to: continue internal growth, notably from educational sources; acquire selected small firms to promote expansion; and encourage technological advancement not just by buying new equipment, but by innovating new methods and directions. The acquisition program began in 1969 with the $2.4 million purchase of Daniels Packaging of Rhinelander, Wisconsin, which specialized in producing foil and flexible film wrap for food and other grocery products. Somewhat ironically, this first acquisition also became the first major unit disposed of by Banta; in 1989 the greatly expanded Daniels was sold for an after-tax gain of $9.6 million.

In 1970, Banta added periodicals printer Hart Press of Minnesota and Menasha neighbor Northwestern Engraving, which prepared color separations for printers (Banta was a major customer). These acquisitions along with internal growth boosted Banta sales volume above $50 million for the first time. In March of 1971 Banta was ready to go public, selling 455,000 shares (a 29 percent interest) at $12.50 per share. A series of stock splits has turned each of these original shares into nine current shares. By 1995, the share value had multiplied more than 25-fold.

Acquisitions continued through the 1970s and 1980s. Ling Products of Neenah, Wisconsin, acquired in 1973, made disposable products for the health and food service industries, such as examination gowns, table covers, and bibs. KCS Industries of Milwaukee, purchased in 1975, produced point-of-sale displays. And R. J. Carroll of Harrisonburg, Virginia, bought in 1976 and later named Banta Harrisonburg, provided Eastern production facilities for Bantas basic education-oriented business. Bantas most important acquisition came in 1988, under the leadership of chairman and CEO Harry W. Earle, when Minnesota-based Beddor Companies joined the fold. The move increased Bantas size by about two-thirds and put it into consumer catalogs and direct mail materials (thus serving the fastest growing segments of retail merchandising). It also added to Bantas soft-cover capacity through printer Viking Press of Minneapolis (no relation to the well-known New York publisher Viking). The merger pushed sales above the half-billion mark in 1989 and brought Banta into the Fortune 500. At the same time, Banta further streamlined its corporate name to Banta Corporation.

Acquisitions of high-quality companies remained high on the Banta agenda in the 1990s. Thus, in 1994, Banta added Danbury Printing and Litho of Connecticut, augmenting its capabilities in the direct marketing industry with a strategic manufacturing facility in the Northeast. Another 1994 acquisition was United Graphics of Kent, Washington, which gave Banta a second Western printing plant to complement its Utah facility, Bushman Press, acquired in 1991. Through the United Graphics purchase, Banta also added software giant Microsoft Corporation to its already broad roster of top-level computer industry customers.

All told, Banta has added 23 companies during the first quarter century of its acquisition policy. It expected acquisitions to contribute at least a third of future company growth, according to Donald D. Belcher, who came to Banta as president in the fall of 1994 from office supplier Avery Dennison and took over the chairmanship and CEO position from retiring Calvin Aurand, Jr. in 1995. Banta has succeeded at obtaining strong growth from companies once they have been acquired, which meshes into its overall plan for aggressive and profitable growth from internally developed new products and services.

Banta has organized its many acquisitions into several product groups that operate as largely autonomous enterprises, an approach the company believed would make them quicker, more nimble, and better able to respond to customer needs. The three largest groups in the 1990s, each with a little over one-fifth of total volume, were the Book, Catalog, and Direct Marketing units. The Banta Book Group handled both educational and general books, and also produced instructional games such as Trivial Pursuit, a game wildly popular in the mid-1980s.

The Publications Group, which accounted for about one-eighth of total volume, put out more than 500 educational, trade, religious, and fraternal magazines with circulation mostly in the 15,000-to-350,000 range. Niche-conscious Banta specialized in this type of periodical rather than large-scale consumer magazines because they are less subject to cyclical variation in number of advertising pages; also because regular planned growth is easier to achieve, since each new periodical adds only modestly to sales. Smaller groups were the Banta Digital Group, Information Services, and the more specialized KCS (signs, displays, etc.) and Ling (single-use products) units. One promising new product at KCS was U.S. postage stamps; it was among the first companies to win a contract when the government privatized some of its stamp printing in 1990.

Banta expected to stay strong in the 1990s, noted Belcher, by investing ahead of the curve in new technologies. Between 1990 and 1994, Banta had reinvested $265 million in its operations, $87 million in 1994 alone. Such a figure represented around 10 percent of revenues, more than double the industry average. Capital acquired in the 1990s included a $20-million printing press whose wide web permitted the printing of 50 percent more pages across the web of paper while running at nearly 50 percent greater speed. In another plant, a new Xeikon full-color digital system printed entirely from digital information, requiring no film or plates. Other electronic and optical systems, often enhanced by proprietary software programs, sped prepress preparation and after-printing processing (e.g., addressing and distribution), enabling Banta to offer fast turnaround and highly customized service, such as catalogs or direct mail pieces with content tailored for specific recipients. Similarly, college texts could be custom-bound to match a professors specific course curriculum.

Chairman Belcher expected Bantas core business to continue to be imaging on paper, even as the design, production, and distribution processes which turn out these familiar print products are being revolutionized by digital technologies. And he predicted that a broad array of non-print products, including CD-ROMs and image archiving, would show proportionally faster growth than print. An example of the new kinds of jobs taken on by Banta was an electronic catalog for a major business-to-business cataloger that was essentially a CD-ROM version of its printed catalog. For computer industry customers, Banta not only printed instruction manuals but provided on-demand electronic printing, duplication of floppies diskettes and CD-ROMs, and assembly of software kits.

Though Banta had long expressed interest in the global market, foreign expansion had barely begun in the 1990s. In 1994, Banta established a software documentation unit in the Netherlands, which enabled domestic customers to download data for printing and distribution overseas. Similarly, chairperson Belcher explained, we will have to go to the Far East, if only to meet requirements of domestic customers. In 1994, Banta had also set up KCS-Villanueva as a joint venture in Monterrey, Mexico, for producing in-store point-of-sale displays in Latin America.

Overall, the Banta formula has worked nicely. Since going public in 1971, the company has averaged annualized 13 percent sales and nearly 15 percent earnings growth. It earned $47 million ($2.33 per share) in 1994, and it has raised its dividend for 18 consecutive years. Revenues reached $811 million in 1994. As it moves ahead, Banta sees its industrys future based on capturing information digitally and then re-purposing it into both print and digital formats. And it is intent on leveraging technology leadership to be in the forefront of this future.

Principal Subsidiaries

KCS Industries Inc.; Ling Products, Inc; The DI Group, Inc.; Danbury Printing & Litho, Inc.; United Graphics; KnowledgeSet Corporation; Banta Direct Marketing, Inc.; Banta Software Services International, Inc.

Further Reading

Belcher, Donald D., Presentation on Banta Corporation to the New York Society of Security Analysts, company document, March 6, 1995.

Byrne, Harlan S., Banta Corp. Acquisition Doubles Sales, Moves It into Fast-Growing Field, Barrons, May 29, 1989.

Roberts, Kay, The Founders Wife, Appleton (Wisconsin) Post-Crescent, February 4, 1979.

Stapel, Jeff, and Lorrie Potash, Banta90 Years of Growth, Banta Company Magazine, 1991, pp. 1820.

Henry R. Hecht

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