Quad/Graphics Inc., one of the largest printing companies in North America, signed an agreement to acquire Brown Printing for approximately $100 million.
Brown Printing, with three manufacturing facilities in Waseca (MN), Woodstock (IL), and East Greenville (PA), primarily provides printing and distribution services for publishers and catalogers. Brown Printing is wholly owned by Gruner + Jahr of Hamburg, Germany, a member of the Bertelsmann Media Worldwide family of companies, which also owns RTL Group, Random House and Arvato.
The transaction is subject to customary regulatory clearances and is expected to close in the second half of 2014. Both Quad/Graphics’ board of directors and Brown’s parent company Gruner + Jahr and its shareholders have approved the transaction.
“This acquisition will enhance the many ways we help publishers and marketers drive top-line revenues while better controlling their overall total cost of production and distribution,” stated Joel Quadracci, Quad/Graphics Chairman, President & CEO. “With print as our foundation, we will continue to find innovative ways to connect and integrate print with other media channels to increase reach, response and return on investment.”
Brown expects to generate approximately $350 million in revenues during fiscal year 2014.