RR Donnelley & Sons to acquire Consolidated Graphics for $620 mn
24 Oct 2013
US printing services major RR Donnelley & Sons Co today agreed to buy Consolidated Graphics Inc (CGX), in a $620 million cash-and-stock deal, in order to expand into the commercial printing market.
Under the deal that has been unanimously approved by the boards of both companies, CGX shareholders will receive a combination of $34.44 in cash and a fixed exchange ratio of 1.651 RR Donnelley shares for each outstanding share of CGX they own or $62 per share based on RR Donnelley's closing share price on October 23rd.
This consideration represents a transaction value of approximately $620 million, plus the assumption of CGX' debt.
CGX chairman and CEO, Joe Davis, who holds a 16.5-per cent stake in the company, has agreed to tender his shares to the transaction.
Houston, Texas-based CGX is one of North America's leading general commercial printing companies.
With 70 printing businesses strategically located across 26 states in the US, and Toronto, Prague, and Japan, CGX offers a broad geographic footprint, leading-edge capabilities, and high levels of convenience, efficiency and service.
It offers vast and technologically advanced sheetfed, web and digital printing capabilities through high-end digital presses in nearly all of its facilities, and five state-of-the art digital print centers in the US and Prague.
RR Donnelley, founded more than 149 years ago, is the world's premier full-service provider of print and related services to a variety of customers including publishing, healthcare, insurance, advertising, packaging, retail, technology and financial services.
The Nasdaq and Chicago-listed company has more than 60 facilities spread over four continents, more than 60,000 customers worldwide and reported a turnover of $10.2 billion in 2012.
''Consolidated Graphics is an exceptional fit with RR Donnelley and we are delighted to welcome them to our organisation," said Thomas Quinlan III, RR Donnelley's president and CEO. "This strategic combination will complement the RR Donnelley platform and further enhance our ability to provide integrated communications solutions for our valued clients across all industry verticals."
"Consolidated Graphics' success is due to our outstanding employees and their ability to provide the service and responsiveness of a local printing company while offering customers the flexible solutions and competitive pricing available from our wide network," said Davis.
