Reuters
6:46 a.m. CDT, October 24, 2013
R.R.
Donnelley & Sons Co. plans to acquire Texas-based Consolidated Graphics
Inc. for about $620 million in a cash-and-stock deal.
Donnelley & Sons Co. plans to acquire Texas-based Consolidated Graphics
Inc. for about $620 million in a cash-and-stock deal.
The purchase will allow Chicago-based Donnelley to
expand its footprint in the commercial printing market, the company
said. ”Consolidated Graphics is an exceptional fit with RR Donnelley …
this strategic combination will complement the R.R. Donnelley platform,”
said Thomas Quinlan, R.R. Donnelley’s chief executive.
expand its footprint in the commercial printing market, the company
said. ”Consolidated Graphics is an exceptional fit with RR Donnelley …
this strategic combination will complement the R.R. Donnelley platform,”
said Thomas Quinlan, R.R. Donnelley’s chief executive.
Consolidated Graphics shareholders will receive $34.44
in cash and 1.651 of R.R. Donnelley shares for each outstanding share of
Consolidated Graphics they own. R.R. Donnelley will also assume Consolidated
Graphics’ debt.
in cash and 1.651 of R.R. Donnelley shares for each outstanding share of
Consolidated Graphics they own. R.R. Donnelley will also assume Consolidated
Graphics’ debt.
This values the deal at $62 per share based on R.R.
Donnelley’s closing price on Wednesday, the companies said in a statement.
Donnelley’s closing price on Wednesday, the companies said in a statement.
Consolidated Graphics’ shares closed at $63.60 on
Wednesday.
Wednesday.
The deal is expected to add to R.R. Donnelley’s adjusted
earnings within 12 months of the deal, which is estimated to close in the first
quarter of 2014.
earnings within 12 months of the deal, which is estimated to close in the first
quarter of 2014.
Houston-based Consolidated Graphics provides digital and
commercial printing services.
commercial printing services.
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The agreement has been unanimously approved by the
boards of both the companies.
boards of both the companies.
Reprographics 101 
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