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QUAD TO ACQUIRE WORLDCOLOR

Quad/Graphics, the largest privately held printer in the U.S., has announced plans to acquire Worldcolor, the second largest provider of print, digital and related services in the Americas. For customers, this expansion translates into a more complete range of services, stronger revenue-generating solutions and an enhanced ability to capitalize on print’s strengths in a multi-channel world.

ENHANCING QUAD’S POSITION
As always, Quad/Graphics is betting heavily on print’s future. The transaction, which is expected to close this summer, will enhance Quad/Graphics’ leadership position in the printing industry through an expanded geographic footprint and a broader product and service offering. It will better position it to succeed in a dynamic, highly fragmented and competitive printing industry and strengthen Quad’s ability to help its customers compete successfully in a constantly expanding digital world.

A STRONGER SUPPLY CHAIN
“By combining the strengths of both companies, we will enhance our leadership position in the printing industry,” said Joel Quadracci, Quad/Graphics Chairman, President and Chief Executive Officer. “Customer needs and demands are rapidly evolving, and our expanded company will be even better equipped to meet those demands. With increased access to capital markets, we plan to make appropriate investments in our platform and data-driven solutions to secure the future of print. With our strong commitment to innovation and customer satisfaction, combined with the greater operational efficiencies we’re targeting, we’ll be better able to achieve our strategic objectives and continue to generate industry-leading margins and profitable growth, all while creating opportunities for our customers, shareholders and employees.”

As a result of the transaction, Quad/Graphics not only cements its position as a major industry player, but solidifies its financial footing. By making the move to become a publicly traded company, Quad will be using equity to complete the transaction rather than levering up the company with debt. And with the Quadracci family holding 78% of the voting control, the Quad culture and innovative method of doing business is ensured.

Joel summed it up by saying, “Even though our company will no longer be privately held, our clients can expect the same Quad-proven mode of operation: an intense focus on customer service and a commitment to managing the business for today and the long term.”

PROVEN LEADERSHIP
Joel Quadracci will serve as Board Chairman, President and Chief Executive Officer of the expanded company. Mark Angelson, current Worldcolor Chairman and CEO, will join the Quad/Graphics Board, bringing an impressive history in public company management and the print industry. The two leaders will be backed up by a seasoned management team that boasts an average of 20+ years of experience.

“Quad/Graphics has a long tradition of leadership and operational excellence,” Mr. Angelson said. “I consider Joel and his management team to be among the best and brightest executives anywhere. They’ve built a company known for having the industry’s best technology, automation and robotics, and world-class customer service.”

Added Joel: “Through our comprehensive due diligence, we learned Worldcolor has very talented and professional employees who have performed well in challenging and turbulent times. We look forward to having them join and strengthen our industry-leading team.”

BUILDING YOUR BUSINESS
Quad/Graphics leaders have determined this transaction will put the company and its clients in a stronger competitive position today and in the future. Through the acquisition, Quad intends to achieve greater operational efficiencies, enhanced flexibility and reduced cycle time, all while significantly improving its supply chain management capabilities. Management also plans to continue to make innovative strides and investments in data-driven solutions that enable its clients to generate higher response rates for both print and online communications.

The enhanced capabilities afforded by this acquisition places Quad/Graphics in even stronger position to not only meet the challenges of its clients, but to offer up new and better ways for them to increase response, revenues and market share.

BROADER CAPABILITIES AND REACH
In addition to enhancing Quad’s standing as one of the world’s leading commercial printers, the acquisition enables the company to provide comprehensive services for the magazine, catalog, retail insert, book, directory, direct mail and logistics industries, as well as provide premedia products and services.

Quad’s geographic reach and product and service offering will be greatly expanded throughout the United States and Canada. The increase in the size and breadth of its manufacturing platform includes the addition of numerous wide web offset and gravure presses as well as saddle stitchers and perfect binders.

Quad/Graphics will also expand its presence in Latin America, adding Mexico, Peru, Columbia and Chile to its current facilities in Brazil and Argentina. In combination with its current locations in Poland, this leaves Quad/Graphics with a significant global footprint and the ability to serve its clients’ needs wherever they may be.

INDUSTRY-LEADING EFFICIENCIES
Quad/Graphics’ leadership in the co-mail arena will be applied and integrated across a larger, broader platform. Increased co-mail volume should generate extensive distribution efficiencies and postage savings, as well as improved speed-to-market and enhanced product integrity for items delivered through the U.S. Postal Service.

STAY TUNED 
The transaction is expected to be completed this summer. In the meantime, it’s business as usual at Quad/Graphics: providing solutions that create competitive advantages for customers.

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