With three huge acquisitions in six months, R.R. Donnelly, the world’s largest printer, has transformed itself into a $10+ billion company.
With three printer-acquisitions in the last six months, Chicago-based R.R. Donnelley, already a dominant player, transformed itself into the dominant player and, perhaps, changed the way publishing companies will buy print services. Donnelley started in Novemeber with the purchase of Menasha, Wisconsin-based Banta Corp. for an all-cash price of $1.3 billion, pulling the company right out from underneath Cenveo Inc.’s nose, which had offered $1.2 billion just a month prior.
“Our publishing, catalog and direct marketing customers, in particular, will benefit from combined resources that will allow us to craft even more innovative and responsive solutions,” John Paloian, Donnelley group president of publishing & retail services, said in a statement at the time. “From digital prepress capabilities through sophisticated logistics, our enhanced flexibility will allow us to address our customers’ needs more quickly for cost-effective and compelling communications.”
Less than two months later, the company acquired Perry Judd’s Holdings, a private printer, for $176 million. Of the purchase price $27 million was for the acquisition of the company’s common stock, with the rest to be used for the company’s preferred stock and the assumption of its debt, which will be repaid after the deal closes this year. Donnelley completed its trifecta earlier this year, when it announced the purchase of Armonk, New York-based Von Hoffmann, a printer of books and other products, for $412.5 million.
The company made a $1.25 million debt offering to pay for its $1.3 million purchase of Banta in January, when then-CEO Mark Angelson said in a statement that the company’s purchase of Von Hoffmann completed the company’s “trilogy” of transactions designed to offer its customers greater capacity and flexibility. Donnelley, already the largest printer in the world with $9 billion in revenues before the acquisitions, increased its revenues by billions with the three purchases, and dramatically furthered a two-decade wave of printer consolidation and narrowing publisher choice.
Following the November purchase of Banta Corporation for an all cash sum of $1.3 billion, R.R. Donnelley quickly bought out Perry Judd’s Holdings Inc. in December and started 2007 with the acquisition of Von Hoffmann for $412.5 million.