US group Quad/Graphics is taking over rival LSC Communications in a merger that will create a new $8bn (£6.3bn) turnover industry giant.
Quad/Graphics will acquire LSC Communications (formerly the RR Donnelley magazine, catalogue and book printing operations) in an all-shares deal that values LSC at approximately $1.4bn.
The move comes two years after RR Donnelley completed its split into three separate businesses.
Quad/Graphics said the deal would “strengthen the role of print in a multi-channel world”, while chairman and chief executive Joel Quadracci described it as a “defining moment” in the firm’s history.
“We have grown from a printer with a single facility to a global marketing solutions provider with a seamless, integrated offering that creates value for all our shareholders at a time of significant media disruption,” he stated.
Quad/Graphics has sales of $4.2bn and LSC’s turnover for the past year was $3.9bn, although this included $244m in sales from the Polish web offset businesses acquired by Walstead in July.
Quad has two printing plants in Poland encompassing web offset, large-format, and commercial printing.
Neither business currently has any operations in the UK.
The takeover is subject to approval by the shareholders of both companies, and the regulatory authorities, and is expected to be finalised by mid-2019.
Quad/Graphics outlined expected synergies of $135m within two years, including capacity rationalisation, administration savings, and supply chain efficiencies.
Quad has 22,000 employees and 55 manufacturing and distribution sites worldwide, while LSC has 22,000 employees and 59 facilities.