The American printing company, Quad/Graphics, Inc. has recently announced plans to acquire leading printing and digital media solutions firm, LSC Communications, Inc. in an all-stock transaction valued at $1.4 billion, creating a combined company that would amass a revenue of around $8 billion through the first three quarters of 2018.
As per sources, the transaction would come across as the largest and most significant deal in a publication-printing industry and is likely to result in one or more plants to shutdown and other business efficiencies, which Quad claims will amount around $135 million in less than two years.
According to Forbes, Joel Quadracci, CEO of Quad/Graphics, said that the company has grown from a printer with a single facility to a global marketing solutions provider, and with LSC Communications the company aims to create a compelling combination of expertise, talent and client technology to further fuel its Quad 3.0 marketing solutions transformation.
For the record, LSC and Quad, along with renowned printing company, RR Donnelley, rank as the top three printers on the Printing Impressions’ list of the 400 top printers, serving the United States and Canada. Moreover, with revenue of more than $3 billion and more than 20,000 employees serving the catalog, book and magazine printing spaces, LSC reportedly focuses on business services and marketing.
Sources close to the deal cite that LSC Communications shareholders, under the specific terms of the agreement, will receive 0.625 shares of Quad’s Class A common stock for each LSC share, representing approximately 29% of the total economic ownership and approximately 11% vote of the combined company.
Recent market reports cite that the merger would represent a premium of 34% to LSC Communications shareholders. Meanwhile, Quad’s shareholders will continue to maintain the firm’s Class A and Class B shares, representing around 71% of the total economic ownership of the combined company and approximately 89% of the total voting power