Donnelley Acquires Cardinal Brands
CHICAGO—RR Donnelley has signed a definitive agreement to acquire Cardinal Brands—a designer, developer and manufacturer of document-related business, consumer and hobby products—for $130 million, less repayment of debts, retirement of preferred stock and other items.
Pending regulatory approval, the all-cash deal for Lawrence, KS-based Cardinal Brands is expected to close in the fourth quarter of 2007 and be accretive to Donnelley’s earnings within the first 12 months.
Cardinal Brands is owned by Westgate Group, a St. Louis-based private equity firm. It has manufacturing operations in the United States, Mexico and Great Britain. The brand line includes Adams business forms, Cardinal ring binders, and Globe-Weis document organization and storage products.
“Cardinal Brands is an exceptional fit with RR Donnelley’s office and consumer products offering,” said Thomas Quinlan, RR Donnelley president and CEO, in a statement. “Their well-known brands complement our popular TOPS office products.
“We expect to realize immediate selling, manufacturing, distribution, administrative and other synergies, as we take this expanded line of respected brands to our combined base of multi-channel retailers, wholesalers, contract stationers and dealers.”