Quebecor and World Color in Massive Deal
GREENWICH, CT—Following weeks of industry speculation, Quebecor Printing and World Color Press signed a definitive merger agreement in which Quebecor will acquire all stock in the US $2.7 billion industry giant based here.
The acquisition is reportedly the largest in the history of the printing industry. Officials say the new combined company, to be known as Quebecor World Inc., will be the largest commercial printer in the world, serving customers in magazines, catalogs, books, retail inserts and circulars, and specialty/direct mail printing.
Quebecor Printing will pay approximately US $840 million in cash, representing US $35.69 per share, and will also assume the debt of World Color in the approximate amount of US $1.3 billion.
The board of directors of World Color, by a unanimous vote, recommended acceptance of the offer. Both the tender offer and the merger are expected to be completed within four months.
"Two of the fastest growing commercial printers have joined to create a new industry leader, committed to continued growth, sensitive to customer needs and positioned to set new highs in shareholder expectations," says Charles Cavell, president and CEO of Quebecor Printing. "The World Color management team enjoys a stellar reputation in our industry. The fit of our two companies couldn't be better from the point of view of customers and shareholders," he says.
Robert G. Burton, chairman and CEO of World Color, adds, "Quebecor Printing, with its global presence, and World Color, with its solid position in the United States, will create a tremendous team." Burton will leave following the completion of the takeover, but will become a member of the Quebecor World board of directors.
Pierre Karl Péladeau, vice chairman of Quebecor Printing and president and CEO of Quebecor Inc., notes, "Quebecor is proud to be at the forefront of bringing together two of the most successful printing companies in the world. No two companies are better suited to merge for the good of improved customer service and increased shareholder value."