Quad/Graphics : Solving the Integration PuzzleMay 2011
The following is a look at each of the Quad/Graphics divisions that were most impacted by the company's acquisition of Worldcolor, along with market assessments from each of the division presidents.
Commercial and Specialty
Craig Faust is a forward-thinking printer. The former chief executive of HGI Co. took one look at the synergies created by the confluence of the Quad/Graphics and Worldcolor assets—along with those of his firm—and knew that the combined talents, capabilities and market opportunities would make for a rising force within the Quad organization. By the end of 2010, the strategic partnership forged between Quad and HGI turned into a full-fledged acquisition.
Last December, Faust was named president of the newly minted commercial and specialty printing division at Quad. The former HGI facilities in Burlington and Menomonee Falls, WI, were joined with Quad's commercial and book operations in Enfield, CT, and Leominster, MA, which came in the Worldcolor deal.
The new platform was quickly given a multi-million dollar capex infusion to augment the platform with equipment and facility expansions, including both digital and conventional presses with capabilities for short- to medium-run commercial work, as well as specialty printing like wide-format, in-store signage and displays.
The division offers quick-turn and transactional commercial products such as marketing collateral; print-on-demand, customized publications; short-run books, catalogs and directories; specialty binding; and in-store/point-of-purchase (POP) materials. Quad is also bullish on HGI's Tempt in-store marketing promotions unit.
"There are so many resources available now," Faust remarks. "We're all printers at heart, so everyone has a common goal, a common purpose. Everybody's got a solid vision for where we want to go, and we're all focused on creating value for our clients and employees.
"We have the technology, geographic footprint, a history and talent within the organization. It's all about single-source simplicity."
Retail Inserts, Books, Directories and Canada
With the exception of some book and gravure insert work, this four-headed division is virtually a greenfields experience for Quad/Graphics. Joel Quadracci tapped Brian Freschi, a 17-year member of the Quebecor World franchise, to serve as president of the biggest capabilities infusion to come from the acquisition.
Freschi sounds like a printer whose been given a new lease on life. He had endured the merry-go-round of chief execs at Quebecor World (about eight by his count), and is enthralled by the tradition and stability that an organization like Quad offers. That stability and sense of direction certainly resonates with customers, as does the company's commitment to capital investment and technology.