October 24, 2013 By PrintAction Staff
Two of the largest printing operations based in the United States are set to join forces with R. R. Donnelley & Sons Company this morning announcing plans to acquire Consolidated Graphics Inc. for approximately US$620 million.
R. R. Donnelley (RRD) signed a definitive agreement to purchase Consolidated Graphics, which has been unanimously approved by each company’s Board of Directors. Joe Davis, Chairman and CEO of Consolidated Graphics, agreed to vote in favour of the merger agreement. His shares currently represent around 16.5 percent of all Consolidated Graphics outstanding shares.
Under the terms of the transaction, Consolidated Graphics shareholders will receive a combination of $34.44 in cash and a fixed exchange ratio of 1.651 RRD shares for each outstanding share of Consolidated Graphics they own; or $62 per share based on RRD’s closing share price on October 23. This represents a transaction value of approximately $620 million, plus the assumption of Consolidated Graphics’ net debt.
“Consolidated Graphics is an exceptional fit with R.R. Donnelley and we are delighted to welcome them to our organization,” stated Thomas Quinlan III, President and CEO of RRD. “This strategic combination will complement the R.R. Donnelley platform and further enhance our ability to provide integrated communications solutions for our valued clients across all industry verticals.”
Consolidated Graphics primarily focuses on commercial printing, fulfillment services and print management. Headquartered in Houston, Texas, Consolidated Graphics controls 70 printing businesses located across 26 states, as well as operations in Toronto, Prague, and Japan.
The completion of the transaction is subject to customary closing conditions, including regulatory approval and approval of Consolidated Graphics’ shareholders.
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