RR Donnelley Reports Q2 2015 Results, Intent to Create Three Independent Publicly Traded Companies
The creation of these three independent businesses is expected to deliver the following strategic and financial benefits:
- Each business to focus on its distinct strategic priorities, driving opportunities to accelerate growth and enhance long-term value.
- Greater flexibility to execute tailored business strategies and compete in evolving markets.
- Even more focused brand strategy to support each business's marketing plan.
- Tailored capital structures reflective of each business's financial and growth profiles.
- Better-optimized investment policies.
- Market recognition of standalone growth prospects and profitability.
- Enable investors' valuations to reflect each business's unique operating and financial dynamics.
"We recognize that parts of the current portfolio will be more successful pursuing different strategies, and that these particular businesses offer the scale, expertise, product and service mix and other resources to excel as standalone companies," Quinlan added. "Creating three independent companies will allow each to more quickly capitalize on opportunities created by continued technological innovation and globalization within the markets they serve."
Financial Communications Services Company (FinancialCo)
FinancialCo will be a leading, financial communications services company serving both the investment and capital markets worldwide. With proprietary technology, extensive capabilities and deep subject matter expertise, FinancialCo will support its customers with content management, multichannel content distribution, data management and analytics, collaborative workflow and business reporting tools and translations services. FinancialCo's one-stop-shop offering leverages a unique combination of technology, service and regulatory expertise built through the combination of RR Donnelley's financial print business, Bowne Financial and EDGAR Online.
As a standalone company with trailing 12-month net sales for the period ended June 30, 2015 of approximately $1 billion, the company believes FinancialCo will be positioned to aggressively invest in leading technology and workflow tools to support its customer communications requirements in a growing and fast evolving marketplace and to generate strong margins and cash flow to capitalize on significant opportunities in content collaboration, data analytics and compliance/regulatory services.