Quad/Graphics buying LSC Communications in All-stock Deal Worth $1.4 Billion
The move comes as Quad/Graphics aims to expand its reach in the segment.
US printing services company, Quad/Graphics has said that it has agreed to acquire commercial printing peer LSC Communications in an all-stock transaction, valuing the target at approximately $1.4 billion, LSC said in a statement.
The move comes as Quad/Graphics aims to expand its reach in the segment.
As part of the agreement, LSC investors will get 0.625 shares of Quad Class A common stock per share they own in the target. The transaction price represents a premium of 34% to LSC’s and Quad/Graphics’ share prices as of Tuesday’s close.
According to the Sussex, Wisconsin-based Quad/Graphics, the deal creates a highly efficient print platform to fuel its 3.0 transformation and strengthen the role of print in a multichannel media world.
“Quad’s 3.0 strategy creates more value for all stakeholders by leveraging a strong print foundation as part of a much larger, more robust integrated marketing solutions offering, and the transaction will broaden Quad’s client base and revenue-generating potential,” the company said in a statement on Wednesday.
Quad/Graphics is a producer of magazines, books, catalogs, direct mail, and other commercial materials. The combined company will be led by Quad/Graphics’ chief executive officer, president and chairman, Joel Quadracci.
“This is a defining moment in Quad’s 47-year journey. We have grown from a printer with a single facility to a global marketing solutions provider with a seamless, integrated offering that creates more value for all our stakeholders at a time of significant media disruption,” the executive said in a statement.
Shares in LSC Communications are down more than 42% since the beginning of the year and are currently trading at about $8.50 per share. Quad/Graphics’ stock is also down year-to-date, about 21%.
Quad was advised in this transaction by J.P. Morgan Securities, BDT & Company and Foley & Lardner. LSC Communications was advised by BofA Merrill Lynch and Sullivan & Cromwell.