Power of print drives acquisition of marketing communications company
Quad/Graphics acquires Vertis in $258.5-million deal, strengthening and expanding its retail advertising insert, direct marketing and in-store marketing solutions.
October 12, 2012
by Canadian Packaging Staff
SUSSEX, WI and BALTIMORE, MD—Quad/Graphics, Inc. of Sussex, WI announced it will acquire the assets of Vertis Holdings, Inc. of Baltimore, MD. in a $258.5-million deal.
The acquisition will enhance Quad/Graphics’ position as a leader in the production of retail advertising inserts, direct marketing and in-store marketing solutions while providing continuity, financial stability and continued business investment for Vertis’ clients and employees. Vertis expects to generate approximately $1.1 billion in revenues and approximately $60 million in EBITDA, adjusted for restructuring, impairment and other transaction-related expenses, during fiscal year 2012.
“Quad/Graphics believes in the power of print in today’s multichannel media world and this acquisition further strengthens our ability to help retailers and direct marketers drive meaningful business results,” states Quad/Graphics chairman, president and chief executive officer Joel Quadracci. “The combination of Quad/Graphics and Vertis is a natural and strategic fit. The complementary capabilities of our two businesses in retail advertising inserts, direct marketing and in-store marketing will further strengthen and expand our offerings, and will allow us to even better serve our clients, achieve additional efficiencies and build long-term value for our shareholders. We look forward to welcoming Vertis’ clients and employees into our family.”
Vertis’ board and senior management team accepted the offer from Quad/Graphics following an extensive and in-depth process to review strategic opportunities for its businesses conducted over the past several months.
“The offer from Quad/Graphics was the most compelling proposal we received because it ensures continuity for clients and the greatest number of opportunities for our employees while also maximizing value for our stakeholders,” says Vertis chief executive officer Gerald Sokol, Jr. “By combining the talents and resources of these two great companies, we will be able to enhance the levels of service, quality and technological innovation we provide to our clients, further improving the effectiveness of our programs and increasing clients’ returns on their marketing investments. We are excited by the opportunities ahead and thank our lenders for their continued support in securing a smooth transition for our businesses.”
Vertis’ clients and suppliers can access additional information about the Company’s Chapter 11 filing on its dedicated website, www.VertisRestructuring.com. Vertis also has established a supplier support center, which may be reached at 866-927-7076 or via e-mail at SupplierSupport@vertisinc.com.
Quad/Graphics will announce its plans for integration following the completion of the sale process, including any changes to the combined companies’ manufacturing and service platform.
Quad/Graphics is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts/circulars, direct mail, books, directories, and commercial and specialty products, including in-store signage. The company has approximately 22,000 full-time equivalent employees working from more than 50 print-production facilities as well as other support locations throughout North America, Latin America and Europe. As a printing industry innovator, Quad/Graphics (www.QG.com) is redefining the power of print in today’s multimedia world by helping its clients use print as the foundation of multichannel communications strategies to drive their top-line revenues.
Vertis is a results-driven marketing communications company that delivers inventive advertising, direct marketing and interactive solutions to prominent brands across North America providing integrated data solutions, digital program management systems, creative services, world-class print and mail production, logistics, out-of-home and business process outsourcing. For more information, visit www.vertisinc.com.