RR Donnelley & Sons Company (RRD) of Chicago intends to form into three independent, publicly traded companies: with one business focused on financial communications and data services; one business focused on publishing and retail-centric print services; and one business focused on customized multichannel communications management.
“Over the last decade, we have strengthened our business portfolio through a combination of organic growth and strategic acquisitions, developing new products and services, inventing fresh ways to serve customers, attracting additional talent and building information technology systems,” said Thomas Quinlan III, RR Donnelley’s President and CEO. “We see a significant opportunity to unlock value by allowing these three businesses to pursue their own strategies and invest according to the unique dynamics of their respective industries.”
The planned Financial Communications Services Company (FinancialCo) will support its customers with content management, multichannel content distribution, data management and analytics, collaborative workflow and business reporting tools and translations services. RRD reports FinancialCo as a standalone company has trailing 12-month net sales for the period ended June 30, 2015, of approximately US$1 billion. FinancialCo will leverage a combination of technology, service and regulatory expertise built through the earlier integration of of RRD’s financial print business, Bowne Financial and EDGAR Online.
The planned Publishing and Retail-Centric Print Services Company (PRSCo) will prepare, produce and distribute clients’ periodicals, catalogues, inserts, books, office products and directories. PRSCo, as a standalone company, is described as having trailing 12-month net sales for the period ended June 30, 2015, of approximately $3.5 billion.
The planned Customized Multichannel Communications Management Company (CMCo) will assist organizations around the world in creating, managing and executing multichannel communications strategies. CMCo will offer customized digital and printed communications services like direct mail, short-run commercial printing, statements, business process outsourcing, supply chain management, logistics, creative design, content management, forms, labels, packaging, and kitting and fulfillment. PRSCo, as a standalone company, is described as having trailing 12-month net sales for the period ended June 30, 2015, of approximately $7 billion.
RRD expects to complete the spinoffs prior to the end of 2016, at which time existing shareholders will own shares in all three companies. The leadership, governance, corporate branding and other matters for each company are still being developed.
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