RR Donnelley to buy Consolidated Graphics for about $620 mln

Thu Oct 24, 2013 3:54am EDT

Oct 24 (Reuters) - RR Donnelley & Sons Co said it will buy Consolidated Graphics Inc for about $620 million in a cash-and-stock deal, to expand its footprint in the commercial printing market.

As per the deal, Consolidated Graphics shareholders will receive $34.44 in cash and 1.651 of RR Donnelley shares for each outstanding share of Consolidated Graphics they own. RR Donnelley will also assume Consolidated Graphics' debt.

This values the deal at $62 per share based on RR Donnelley's closing price on Wednesday, the companies said in a statement.

Consolidated Graphics' shares closed at $63.60 on Wednesday.

The deal is expected to add to RR Donnelley's adjusted earnings within 12 months of the deal, which is estimated to close in the first quarter of 2014.

"Consolidated Graphics is an exceptional fit with RR Donnelley... this strategic combination will complement the RR Donnelley platform," said Thomas Quinlan, RR Donnelley's chief executive.

Houston-based Consolidated Graphics provides digital and commercial printing services.

The agreement has been unanimously approved by the boards of both the companies.

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