Biggest printer in US sold to private equity
RR Donnolley, the biggest printer in North America, is being bought by the private equity fund that owns former sister company LSC, which is itself the third biggest printer in the US.
Atlas Holdings will pay US$2.1bn for RR Donnolley, with an $8.52 a share offer representing a 29 per cent premium on the share price. Once the deal goes through the print giant will no longer trade on the NYSE.
RR Donnolley had sales of US$5.5bn in financial year 2020 keeping it in top spot in the US print world, with long time rivals Quad coming in at number with US$3.9bn, and LSC the third biggest printer at $2.84bn. LSC, which is now owned by Atlas, was part of RR Donnolley until the business was split into three five years ago.
The deal is expected to go through early next year, although RR Donnolley has made itself open to unsolicited bids from other parties the next 25 days.
Dan Knotts, president and and CEO at RR Donnolley said, “Today’s announcement represents an exciting next phase of RRD’s journey. This transaction is a testament to our talented employees, whose passion for and dedication to serving our clients has helped build our company into the industry leading marketing and business communications company we are today.
“Under our new ownership structure, they will have access to even more career building opportunities in the future.”
RR Donnolley is one of the big four global print businesses with rival US outfit Quad, and Japanese giants Dai Nippon and Toppan also in the elite group.