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."