RR Donnelley to Acquire North American Operations of Esselte
January 06 2014 - 6:30AM
R.R. Donnelley & Sons Company (Nasdaq:RRD) and
Esselte jointly announced today that they have
signed a definitive agreement by which RR Donnelley will acquire
substantially all of the North American operations of Esselte, a
privately owned developer and manufacturer of nationally branded
and private label office and stationery products. Its well-known
brands include Ampad™ writing and envelope products, Boorum &
Pease® premium bound books, Oxford® index cards and Pendaflex®
document organization and storage products. The acquisition will
create a more competitive and efficient office products supplier
capable of supplying enhanced offerings across the customer base.
The purchase price includes a combination of cash and up to 1
million shares of RR Donnelley common stock, resulting in a total
transaction value of $96.5 million.
The acquisition is expected to be both deleveraging and
accretive to RR Donnelley's earnings per share within 12 months
following the closing of the transaction. The completion of the
transaction is subject to customary closing conditions, including
regulatory approval.
"Esselte is an excellent fit with RR Donnelley's office products
business as their well regarded brands complement our popular
TOPS™, Adams®, Cardinal®, and Globe-Weis® brands," said Thomas J.
Quinlan III, RR Donnelley's President and Chief Executive Officer.
"We expect to realize significant savings by combining our best
practices, complementary products, and manufacturing and
distribution capabilities, and we look forward to taking the
expanded line of products and respected brands to our combined
customer base of retailers, wholesalers, contract stationers and
dealers."
About RR Donnelley
RR Donnelley (Nasdaq:RRD) is a global provider of integrated
communications. The company works collaboratively with more than
60,000 customers worldwide to develop custom communications
solutions that reduce costs, drive top-line growth, enhance ROI and
increase compliance. Drawing on a range of proprietary and
commercially available digital and conventional technologies
deployed across four continents, the company employs a suite of
leading Internet based capabilities and other resources to provide
premedia, printing, logistics and business process outsourcing
services to clients in virtually every private and public
sector.
For more information, and for RR Donnelley's Global Social
Responsibility Report, visit the company's web site at
http://www.rrdonnelley.com.
About Esselte
The Esselte Group is one of the world's premier manufacturers of
organizational solutions. Esselte is a global office products
company with subsidiaries in 31 countries and distribution in more
than 120 countries. The company's products are sold in Europe
primarily under the Esselte®, Leitz® and Rapid® brands and in North
America primarily under the Pendaflex®, Oxford®, Xyron®, Rapid® and
Ampad® brands.
Use of Forward-Looking Statements
This news release may contain "forward-looking statements" as
defined in the U.S. Private Securities Litigation Reform Act of
1995. Readers are cautioned not to place undue reliance on these
forward-looking statements and any such forward-looking statements
are qualified in their entirety by reference to the following
cautionary statements. All forward-looking statements speak only as
of the date of this news release and are based on current
expectations and involve a number of assumptions, risks and
uncertainties that could cause the actual results to differ
materially from such forward-looking statements. Readers are
strongly encouraged to read the full cautionary statements
contained in RR Donnelley's filings with the SEC. RR Donnelley
disclaims any obligation to update or revise any forward-looking
statements.
CONTACT: RR Donnelley contacts:
Media Contact:
Phyllis Burgee, Director Communications
Tel: +1 630-322-6093
E-mail: phyllis.burgee@rrd.com
Investor Contact:
Dave Gardella, Senior Vice President Finance
Tel: +1 312-326-8155
E-mail: david.a.gardella@rrd.com
Esselte contact:
William J. Lundregan, Senior Vice President
and General Counsel
Tel: +1 203-658-1741
Email: WLundregan@esselte.com
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