Quad/Graphics QUAD and Vertis Holdings, Inc.
today announced the execution of an agreement through which
Quad/Graphics will acquire substantially all of the assets comprising Vertis'
businesses for $258.5 million, which includes the payment of approximately
$88.5 million for current assets that are in excess of normalized working
capital requirements. Upon completion, the acquisition will enhance
Quad/Graphics' position as a leader in the production of retail advertising
inserts, direct marketing and in-store marketing solutions while providing
continuity, financial stability and continued business investment for Vertis'
clients and employees.
Quad/Graphics intends to use cash on hand and draw on its revolving credit
facility to finance the acquisition of Vertis. Vertis expects to generate
approximately $1.1 billion in revenues and approximately $60 million in
EBITDA, adjusted for restructuring, impairment and other transaction-related
expenses, during fiscal year 2012. After taking into account significant
anticipated synergies, Quad/Graphics expects that the acquisition will be
accretive to earnings, excluding any non-recurring integration costs. The
combined entity will realize efficiencies and cost-savings derived from a
superior and more efficient operating platform, expanded volume-driven
mailings and more efficient procurement programs.
Clients will benefit from an enhanced range of products, services and
revenue-generating solutions; expanded industry vertical expertise; increased
manufacturing flexibility and distribution efficiencies from an extended
geographic footprint; and new opportunities to realize mailing and
distribution cost-savings from the combined volumes
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