Quad Plans to Close Its Effingham Printing Plant by End of 2023, Impacting 350 Workers
Sussex, Wisconsin-based Quad announced it will be closing its Effingham, Illinois, direct mail printing operation by the end of the year, citing "industry-wide volume declines due to ongoing economic uncertainty and increasing postage rates."
Effingham is a small community located in south central Illinois.
Employing approximately 350 workers, the Effingham operation — which is owned and will be put up for sale by Quad — consists of two buildings: a 330,000-sq.-ft. Industrial Avenue plant and a 234,000-sq.-ft. building on Niccum Avenue. Located in south central Illinois, Effingham has 12,252 residents, according to the 2020 census.
Print and mail work currently performed in the Effingham location will be consolidated into other Quad locations with enhanced direct mail capabilities, including 100% variable data printing for greater personalization, and robust postal optimization programs, such as volume-driven commingling.
In a prepared statement to the local media, Quad indicated, "This decision in no way reflects the quality and performance of Quad’s Effingham employees, all of whom have performed well and worked hard to make the location succeed. Print remains an important and integral part of Quad’s integrated marketing platform, which gives brands and marketers a more streamlined, impactful, flexible, and frictionless way to go to market and reach consumers."
Quad also pointed out it is offering employees incentives to transfer to Quad U.S. facilities where client work is being consolidated. Workers unable to relocate will be offered a comprehensive separation package that includes separation pay, continuation of healthcare benefits, and career transition assistance through a career counseling company, according to the company.
Quad Effingham Plant Formerly Part of Petty Co.
Quad acquired the Effingham, Illinois, location in July 2010 as part of its acquisition of Worldcolor (the Effingham operation was originally part of the Petty Co., which Quebecor acquired in 1997). Quad became a then-$4.8 billion publicly-held company listed on the New York Stock Exchange as part of the all-stock exchange Worldcolor transaction. Following the acquisition, Quad had approximately 28,000 employees working from more than 80 locations in North America, Latin America, and Europe.
Worldcolor's predecessor company, Quebecor World, filed for bankruptcy protection in January 2008 and emerged in mid-2009 under the name World Color Press. Early in 2009, R.R. Donnelley & Sons reportedly offered to buy Quebecor World for about $1.5 billion in cash and stock, but the offer was rejected.
Several major printing industry M&A transactions also occurred in 2010 — Quad acquired HGI Inc., RR Donnelley obtained Bowne & Co., and IWCO Direct purchased the U.S. direct mail printing operations of Transcontinental Inc. that year.
Today, Quad calls itself a "$3 billion, global marketing experience company" that operates 45 global facilities and employs about 15,000 employees. The majority of its operations are in the U.S., where it operates approximately 30 printing plants (including the Effingham location) and 80+ client on-sites, and employs approximately 11,000 workers.
Quad now serves more than 2,900 clients across the retail, publishing, consumer packaged goods, financial services, healthcare, insurance, and direct-to-consumer industries.
Mark Michelson now serves as Editor Emeritus of Printing Impressions. Named Editor-in-Chief in 1985, he is an award-winning journalist and member of several industry honor societies. Reader feedback is always encouraged. Email mmichelson@napco.com
