Quadracci, Angelson Share Their Accounts of Mega Deal
Joel Quadracci, chairman, CEO and president, Quad/Graphics:
This is a transformational event for Quad/Graphics, and we're excited about the opportunities our acquisition of Worldcolor will present our customers, shareholders, and employees. First and foremost, the acquisition will enable us to expand the future of print. Too often people think it's an either/or world in terms of print and digital media that have emerged. The reality is, print drives consumers to digital media and is a vital component of our multichannel media world. There are many multichannel companies who recognize the value of print to deliver their online offering.
...Quad/Graphics has come a long way since our inception in the early 1970s. We have accomplished a lot during the period in which technology in the printing industry was rapidly changing. As a result, we have developed an unmatched expertise in running operations and staying on top of and utilizing the latest technological advances. We create and exploit efficiency, deploy technology, implement automation and ensure that our platform best benefits our customers. We now are ready to take the next step in our development, and that we believe will best allow us to move forward and continue to succeed over the long term and to provide customers with the most efficient and flexible offering in the industry.
Worldcolor is a company whose employees are talented print professionals. Their commitments to customers is much the same as ours. We look forward to welcoming most of them into the Quad family.
As you can imagine, our board of directors, our senior-most managers, and certainly my family and I spent a great deal of time and effort carefully considering and analyzing this transaction. In the end, we decided that the acquisition of Worldcolor is the best decision for our company moving forward, and it was not even a close call. We also decided that the best way to consummate this combination, with the lowest level of risk, is through a largely share-based transaction. We believe that this combination will generate meaningful cash flow that will allow us to pay down debt relatively quickly. This is prudent from a balance sheet perspective and we think is in the best interest of all our stakeholders. For this reason, we plan to become a publicly-traded company concurrent with the closing of the transaction. We believe this public status will provide us with an additional competitive advantage by way of added incentives for our employees and the new currency with which to capitalize on opportunities as they present themselves.