Quad/Graphics to Acquire Worldcolor
Quad/Graphics, Sussex, Wis., the largest privately held printer in the United States, and Worldcolor, Montreal, the second largest provider of print, digital and related services in the Americas, announced the companies' boards of directors unanimously approved a definitive arrangement agreement whereby Quad/Graphics will acquire Worldcolor, enhancing Quad/Graphics' position as a leader in the printing industry with increased efficiencies, greater geographic reach and broader product and service scope.
The expanded Quad/Graphics will have nearly 30,000 employees serving customers in the United States, Canada, Latin America and Europe. Worldcolor and Quad/Graphics had aggregate unaudited revenues for the 12-month period ended Sept. 30, 2009 of U.S. $5.1 billion and aggregate unaudited adjusted EBITDA of U.S. $647 million. Worldcolor's and Quad/Graphics' unaudited adjusted EBITDA margins for the same period were 9.7 percent and 17.6 percent, respectively.
The transaction is expected to close approximately in the summer of 2010. Quad/Graphics' management estimates that the combination will generate approximately U.S. $225 million in pre-tax net annualized synergies within 24 months. Concurrent with the closing of the transaction, Quad/Graphics intends to become a publicly traded company. Quad/Graphics expects to register its Class A Common shares with the U.S. Securities and Exchange Commission and proceed with a listing on a leading U.S. exchange. Under terms of agreement, Worldcolor shareholders will receive at closing approximately 40 percent of the outstanding shares of Quad/Graphics and Quad/Graphics' shareholders will hold approximately 60 percent of the shares.
For more information, visit www.qg.com or www.worldcolor.com.