Oct 24 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
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
Houston-based Consolidated Graphics provides digital and
commercial printing services.
The agreement has been unanimously approved by the boards of
both the companies.