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.