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Welcome to the New Quad

Quad/Graphics, founded in 1971 and the third-largest printer in the U.S. prior to the acquisition, has acquired Worldcolor, the No. 2 printer in North America. The deal became official on July 2, 2010.

By expanding its geographic footprint and broadening its product and service offerings, Quad is strengthening its ability to help its clients compete in the constantly evolving multichannel world.

Additionally, Quad/Graphics, famous for being privately held since its inception, has become a publicly traded company so it can use equity rather than debt to finance the acquisition.

“Even though our company is no longer privately held, our clients can expect the same Quad-proven mode of operation,” said Joel Quadracci, son of the late founder Harry V. Quadracci. The Quadracci family continues to hold a large majority of the stock and therefore voting control of the company. Joining the Quad/Graphics board is Mark Angelson, former CEO of Worldcolor, bringing an impressive record in public company management and the print industry. The two leaders are backed by Quad/Graphics’ senior management team, which averages 20 years experience with the company. This continuity of management will help maintain consistent strategic goals and strategy deployment.

FINAL PIECES IN PLACE

On March 30, Quad/Graphics and Worldcolor jointly announced they had cleared antitrust regulatory requirements in the United States and Canada in relation to their proposed business combination. This was followed by Canada’s Minister of Industry granting approval of the acquisition on May 18.

The next regulatory hurdle was crossed on May 27 when the U.S. Securities and Exchange Commission (SEC) declared effective the Form S-4 Registration Statement concerning the proposed acquisition, which meant Quad/Graphics was officially a public company.

On June 25, Worldcolor shareholders voted to approve the transaction, which set the stage for the acquisition to close on July 2. Quad/Graphics’ publicly traded stock is listed on the New York Stock Exchange under the ticker symbol QUAD.

THE REASONS

Why did Quad/Graphics enter into this deal? What will clients gain? The global economic recession has caused advertisers to dramatically cut spending, which has reduced page counts in virtually every print segment. At the same time, postal expenses have risen faster than inflation and the use of electronic media technologies has increased – all of which have combined to create excess capacity in the printing industry.

“Through this acquisition, we will realize increased manufacturing and distribution efficiencies, a greater geographic reach, and a much broader product and service offering,” said Joel.

Quad/Graphics has made substantial capital investments in new technologies that deliver targeted and customized print solutions to integrate its products within multichannel campaigns.

“Quad/Graphics believes its success has been fueled by its efficient and modern manufacturing platform, its distribution capabilities, its commitment to ongoing innovation and rapid adoption of technology, its intense customer service focus, its distinct corporate culture, and the continuity in its ownership and management,” says Joel. “In short, our company will be better positioned to win in the vibrant, competitive printing industry and, correspondingly, better positioned to help our clients succeed.

“Worldcolor’s talented, professional employees performed well in challenging and turbulent times,” added Joel. “We’re glad to have them join and strengthen our industry-leading team.”

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