Printer Moves Forward With Aggressive Three-Year Strategy to Transform Its Book Platform
Quad/Graphics, Inc. (NYSE: QUAD) ("Quad/Graphics" or the "Company"), a leading global printer, today announced that its agreement to acquire Courier Corporation (Nasdaq: CRRC) ("Courier") has been terminated. Under terms of a definitive agreement signed with Courier on January 16, 2015, Quad/Graphics would have paid Courier shareholders the equivalent of a total purchase price of $20.50 per share.
On January 27, 2015, Courier received an unsolicited offer from RR Donnelley of $23.00 per share in cash or stock, subject to pro ration. Quad/Graphics declined to negotiate further. Accordingly, Courier terminated its agreement with Quad/Graphics on February 5, 2015, and will pay Quad/Graphics a $10 million termination fee.
"We continue to believe our offer to Courier was compelling and would have provided significant value for all of Quad/Graphics and Courier stakeholders, including shareholders, employees and customers in the book market over the long term," said Joel Quadracci, Chairman, President & CEO of Quad/Graphics. "However, when it comes to spending our capital, we maintain a disciplined approach and, therefore, did not submit a revised offer. We are always careful to consider the impacts of our decisions against our priorities to pay down debt and pension liabilities, invest in our business, pursue future growth opportunities and return value to our shareholders."
Quad/Graphics continues to move forward with its previously announced investment in 20-plus HP color digital web presses and integrated systems. By mid-June, the company will have five such presses in its platform with yet another to be installed before year's end. The technology gives book publishers new abilities to print books on demand and bring the promise of zero inventory and just-in-time delivery closer to reality.
"Our focus remains on transforming our book platform through the rapid implementation of digital press technology that will give publishers increased customization and versioning capabilities; faster time-to-market; reduced waste, inventories and obsolescence; and lower fixed costs," Quadracci said. "This is an exciting time for our Company as we take aggressive steps to change the face of the industry. Our digital printing transformation strategy will bring unique benefits to our clients, and allow us to gain additional market share and grow the book segment of our business."
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