Franklin Quest Co. said Friday it has completed acquisition of Publishers Press Inc. in a stock deal valued at $21.5 million.
Publishers Press prints the Franklin Day Planner and accessory products and provides printing services to clients in the western United States. Both companies are based in Salt Lake City.A spokesman for Franklin Quest said all of the outstanding capital stock of Publishers Press was acquired for 708,000 shares of Franklin Quest common stock valued at $30.375 per share, totaling $21.5 million.
The spokesman said current management and employees of Publishers Press are likely to remain unchanged under the new ownership.
"We are pleased about the potential created by the combination of Franklin Quest Co. and Publishers Press," said Arlen B. Crouch, president of Franklin Quest.
"The combining of the two companies will allow us to maintain Franklin's commitment to high-quality products, control our printing costs and secure greater control over the progress and growth of Franklin. We also expect that the non-Franklin portion of the acquired operations will continue to grow in coming years."
Also Friday, Franklin Quest reported record sales and earnings for its first fiscal quarter of 1995 ended Nov. 30. Sales increased 26 percent over the same period last year to $71.1 million. Earnings were up 25 percent to $12.4 million and earnings per share for the quarter were 56 cents, up from 46 cents for the first quarter of fiscal 1994.
Retail store sales were up 41 percent to $17.2 million. Three stores were opened during the quarter, bringing the total to 52 stores in 22 states. Training sales increased 77 percent to $17.7 million. Catalog sales increased 14 percent. Direct product sales were down 38 percent.