RR Donnelley to buy Consolidated Graphics for about $620 mln

Reuters

Oct 24 (Reuters) - RR Donnelley & Sons Co said itwill buy Consolidated Graphics Inc for about $620million in a cash-and-stock deal, to expand its footprint in thecommercial printing market.

As per the deal, Consolidated Graphics shareholders willreceive $34.44 in cash and 1.651 of RR Donnelley shares for eachoutstanding share of Consolidated Graphics they own. RRDonnelley will also assume Consolidated Graphics' debt.

This values the deal at $62 per share based on RRDonnelley's closing price on Wednesday, the companies said in astatement.

Consolidated Graphics' shares closed at $63.60 on Wednesday.

The deal is expected to add to RR Donnelley's adjustedearnings within 12 months of the deal, which is estimated toclose in the first quarter of 2014.

"Consolidated Graphics is an exceptional fit with RRDonnelley... this strategic combination will complement the RRDonnelley platform," said Thomas Quinlan, RR Donnelley's chiefexecutive.

Houston-based Consolidated Graphics provides digital andcommercial printing services.

The agreement has been unanimously approved by the boards ofboth the companies.

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