Quad/Graphics, a major US printer that prints popular magazines like Playboy and Newsweek, announced it will buy rival Webecor for $1.3 billion. Reuters has more:
Montreal-based World Color, formerly known as Quebecor World, was founded more than a century ago and prints magazines such as Sports Illustrated, US Weekly, Reader’s Digest and Rolling Stone.
The two companies did not announce the deal’s value, but the transaction is expected to be worth between $1.3 billion and $1.4 billion, according to a source familiar with the deal. The agreement would create the second-largest commercial printer in North America, behind R.R. Donnelley & Sons Co (RRD.O).
Privately held Quad/Graphics said that concurrent with the closing of the deal, it intends to become a publicly traded company. Once the deal is complete, Quad/Graphics’ shareholders will hold about 60 percent of the combined entity’s shares, while World Color shareholders will own the remainder of the new company.
The combined entity, which will have nearly 30,000 employees worldwide, is expected to generate annual revenues of more than $5 billion. Quad/Graphics estimates the combined company will also generate about $225 million in annualized savings within 24 months of closing.