One of the world's largest printing companies will crank up its presses in the East Bay Business Center with the takeover of Professional Lithographers Inc.
R.R. Donnelley & Sons Co. announced Tuesday that it has bought financially struggling PROLITHO. Donnelley officials declined to state the purchase price. The transaction was completed last Friday.Donnelley intends to expand the 126,000-square-foot plant and hire between 100 and 150 employees in the next two years. The company owns an option on about four acres of property next to the plant. It will also upgrade the plant's printing equipment.
PROLITHO, renamed the Provo Division of R.R. Donnelley's Documentation Services Group, employs 350 people.
Utah Valley's abundance of high-tech firms attracted Donnelley to the area.
"We've had our eyes on this location for a number of years," said Rich Barbee, the newly named Provo division director. Barbee formerly headed Donnelley's Hudson, Mass., division. "We do a lot of homework before an acquisition."
The Provo plant will focus on documentation services such as printing computer manuals. WordPerfect is one of Donnelley's major customers. Barbee said Donnelley will continue to print magazines, brochures and catalogs for PROLITHO's current customers, although that may change in the future.
Donnelley owns plants throughout the world that print magazines, catalogs, newspaper advertising inserts and books.
Barbee said operational changes will be gradual. "Our objective is not to come in and turn things upside down," he said.
Employees greeted the take-over of PROLITHO with cautious optimism. Barbee and other Donnelley executives met with workers Tuesday at the Seven Peaks Resort Hotel.
"It sounds better than anything we've heard in a heck of a long time, but it's also wise to wait and see," said Brent Matthews, who worked for PROLITHO for two years.
PROLITHO began having financial problems about 18 months ago.
"The people in this company have really taken a pounding," Matthews said.
Mark Gelter said he joined PROLITHO seven months ago "in the middle of the crisis." Paychecks were late and sometimes bounced, he said. PROLITHO also ran short on printing supplies.
Employees said PROLITHO was a good but stressful place to work.
Mel Glodowski said he's glad to have the security Donnelley can provide.
"I'm just looking for some stability," he said. "It's like getting a new job without having to move."