Harland Reports Post-Takeover Losses

DECATUR, Ga. – Harland Clarke Holdings Corp., the nation’s largest check printer forged by the recent takeover of John H. Harland Co. by financier Ronald Perelman, said Friday costs related to the $1.7 billion deal created a $37.5 million loss for the second quarter, compared to a $3.9 million profit for the same period last year. The second quarter loss includes a one-time loss of $54.6 million related to the buyback of Harland debt after the deal. The combination of Harland’s check printing and back-office services with Clarke American, the check printer acquired in 2005 by Perelman, doubled the company’s second quarter revenues to $340 million. For the first two quarters of the year the company reported a loss of $32.4 million. Under the deal, M&F Worldwide, a holding company controlled by Perelman, acquired Harland and combined it with Clarke American, now called Harland Clarke Holdings Corp., which passed Deluxe Corp. as the largest check printer in the U.S. Harland Clarke Holdings will have three operating divisions: Harland Clarke check printing, Harland Financial Solutions and Scantron.