Marketing solutions provider Quad/Graphics today announced it will acquire LSC Communications, a provider of print and digital media solutions, in an all-stock deal valued at approximately $1.4 billion.
Joel Quadracci, Quad/Graphics Chairman, President and CEO, calls the deal a “defining moment” in Quad’s 47-year history.
“We have grown from a printer with a single facility to a global marketing solutions provider with a seamless, integrated offering that creates more value for all our stakeholders at a time of significant media disruption. From this historic business combination, our clients will benefit from a highly efficient print platform, and the additional cost- and time-saving opportunities generated from enhanced production and distribution efficiencies and flexibility, expanded mailing and logistics services, and strengthened print management services,” says Quadracci, who will continue to be the Chairman, President and CEO of the combined company.
Quad says it will expand its board of directors to include two members from LSC Communications’ existing board.
The companies say the transaction will help create a “highly efficient” print platform to fuel Quad’s 3.0 transformation and strengthen the role of print in a multichannel media world, saying Quad’s 3.0 strategy creates value for stakeholders by leveraging a strong print foundation as part of a much larger, more robust integrated marketing solutions offering.
The transaction is expected to close in mid-2019, subject to approval by Quad and LSC Communications shareholders, regulatory approval and other customary closing conditions. As of September 30, 2018, the combined company would have had annual revenue of approximately $8 billion.
“Together with Quad, we will be better positioned in the dynamic industry environment to efficiently serve our clients though a broader set of offerings to help meet and manage their needs. We at LSC Communications are proud of what we have accomplished, and with Quad we look forward to continuing to build on our rich history of providing clients with innovative industry leading solutions,” says
Thomas J. Quinlan III, LSC Communications Chairman, President and CEO.
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