US printing giant, R.R. Donnelley has confirmed that it is buying Canadian commercial printer Moore Wallace for $2.8 billion and debt, extending its range of printed products and making it the successor once again to the title of ‘world’s largest print company’, an honour currently held by Canadian-based Quebecor World.
The deal, slated for completion in early 2004, will enable Donnelley to add such products as labels, bills and direct mail to its repertoire, which currently includes the high-end printing of catalogues, magazines, directories and the like.
The deal values Moore Wallace at US$17.66 per share, an approximate 16 per cent premium. Moore Wallace shareholders will receive 0.63 R.R. Donnelley shares for each Moore Wallace share held. R.R. Donnelley will also assume US$900m in debt from Moore Wallace.
The combined company will remain under the R.R. Donnelley name and be based in the company’s existing premises in Chicago. The deal will boost Donnelley’s revenues from revenues of US$4.8bn in 2002 to around US$8bn a year.
R.R. Donnelley shareholders will own 53 per cent of the combined company, while Moore Wallace shareholders will own the remaining 47 per cent. R.R. Donnelley and Moore Wallace will contribute eight and seven directors respectively to the combined board.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at firstname.lastname@example.org.
Sign up to the Sprinter newsletter