RR Donnelley buying stationery maker for $96.5M

Printer RR Donnelley buying N.Am. operations of Oxford index cards maker Esselte for $96.5M

Associated Press

CHICAGO (AP) -- Printing company R.R. Donnelley & Sons Co. said Monday that it is buying the North American operations of Esselte, maker of Oxford index cards and other stationery and office products, in a deal valued at $96.5 million.

Esselte's brands sold in North America also include Ampad writing and envelope products and Pendaflex document organizers.

Chicago-based R.R. Donnelley said the acquisition "will create a more competitive and efficient office-products supplier" and is expected to increase its earnings per share within 12 months after closing. R.R. Donnelley's office-products brands include Cardinal and Globe-Weis.

Printing companies like R.R. Donnelley have struggled for years in a world gone digital. The company is best known for its phone book and catalog business. But those catalogs now account for a small proportion of company revenue and it has moved aggressively into other areas such as providing financial reports for corporations.

R.R. Donnelley will pay cash and up to 1 million of its common stock for Esselte's North American operations.

The privately held company subsidiaries in 31 countries. Its North American operations are based in Stamford, Conn.

R.R. Donnelley shares fell 15 cents to end at $19.61, in line with broader market trends.

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