Quad to Buy Courier, Install 20 HP Web Presses

PrintAction Staff
January 19, 2015
By PrintAction Staff

Quad/Graphics Inc. of Wisconsin signed an agreement to acquire Massachusetts’ book manufacturer Courier Corporation for approximately $260 million. Days earlier Quad plans to buy 20 or more HP inkjet web presses over the next three years.

Under terms of the agreement, Quad/Graphics' $260 million purchase of Courier, including approximately $25 million in net debt and capital leases, is to consist of approximately $129 million in cash and approximately 4.8 million shares. Quad will pay Courier shareholders the equivalent of a total purchase price of $20.50 per share.

“After a careful and thorough evaluation process, the Courier board has determined that the transaction with Quad/Graphics maximizes value for our shareholders,” said James Conway III, Courier’s Chairman, President and CEO, adding the combination opens up what he calls a world of additional opportunities. “The addition of Courier's four-color offset presses, digital inkjet presses, end-to-end process management and integrated software solutions further enhances Quad/Graphics' efforts to transform the book industry to the benefit of publishers and readers everywhere."

Quad states the acquisition of Courier, which will be reviewed by regulators, accelerates its 3-year strategy to transform its book platform, which is to include the purchase of at least 20 HP high-speed inkjet web presses, as well as associated front-end workflow and back-end finishing.

Quad plans to put into production five HP web presses this year, the first of which was to begin installation this month. The other 15-plus presses will be installed in the remaining two-year period. Once all units are installed, Quad/Graphics states it will have the capacity to produce nearly 3-billion colour pages each month.

“Using digital technology, Courier pioneered the development of customization solutions that now bring class-specific versions of academic textbooks to millions of students each year,” said Joel Quadracci, Quad/Graphics Chairman, President & CEO. “The company has continually reinvested in its platform, and with our previously announced investment in 20-plus digital presses and integrated systems, together we will accelerate a broad industry transition to a print-on-demand, zero-inventory model."

Add comment

Security code

Subscription Centre

New Subscription
Already a Subscriber
Customer Service
View Digital Magazine Renew

Most Popular

We are using cookies to give you the best experience on our website. By continuing to use the site, you agree to the use of cookies. To find out more, read our Privacy Policy.