Quad/Graphics to buy World Color Press – WSJ

Jan 26 (BestGrowthStock) – U.S. commercial printing company
Quad/Graphics Inc is expected to buy Canadian rival World Color
Press Inc (WC.TO: ) for about $1.3 billion to $1.4 billion, the
Wall Street Journal said, citing people familiar with the
matter.

The deal would create North America’s second-largest
commercial printer by sales, behind industry leader R.R.
Donnelley & Sons Co (RRD.O: ), the paper said.

Shareholders of World Color, which prints such magazines as
Sports Illustrated and Rolling Stone, would get a 40 percent
stake in the newly combined company, according to the paper.

The new company would be listed on a U.S. stock exchange,
people familiar with the matter told the paper.

Both the companies estimate their combined 2010 earnings
would be around $875 million, including cost savings, the paper
said.

The Quadracci family, which owns Quad/Graphics, would
control the combined company after it goes public through
ownership of class B shares, the people told the paper.

Quad/Graphics Chief Executive Joel Quadracci would lead the
combined company, the paper said.

Quad/Graphics and World Color Press could not be
immediately reached for a comment by Reuters outside of regular
U.S. business hours.

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(Reporting by Sakthi Prasad in Bangalore; Editing by
Muralikumar Anantharaman)

Quad/Graphics to buy World Color Press – WSJ