Printer on target to generate approximately $225 million pre-tax net annualized synergies within 24 months of closing
Sussex, WI – Quad/Graphics, Inc. (“Quad/Graphics”) announced today it will close five plants as part of its ongoing integration plans. The company expects operations to cease at the following plants by the end of 2010: Clarksville, TN; Corinth, MS; Lebanon, OH; Reno, NV; and Dyersburg, TN. The Dyersburg plant had been previously announced for closure in the first quarter of 2011 by World Color Press Inc. (“Worldcolor”); however, Quad/Graphics will accelerate its closure to this fall.
The Quad/Graphics Clarksville facility closing is scheduled for November and will result in the loss of 700 local jobs.
“Today’s announcement is a major step in integrating operations and creating the most efficient and modern manufacturing platform in the industry,” said Joel Quadracci, Chairman, President & CEO of Quad/Graphics. “Through this plan, more clients will benefit from our industry-leading technology and automation, while continuing to receive top-quality, on-time services.”
The five plants announced for closure encompass nearly 2.7 million square feet and employ a total of approximately 2,200 employees. Most of the equipment housed in the plants will be shut down and scrapped, thereby permanently removing excess capacity. Quad/Graphics will consolidate work into plants with the most efficient and competitive platforms. It has developed a comprehensive plan designed to smoothly transition client work between facilities.
The company will proactively assist impacted employees in finding new jobs, including those available at other Quad/Graphics locations. “We value the talents and contributions of employees impacted by today’s announcement, and want to help them with their career transition,” Mr. Quadracci said. “No plant is closing because of employee performance or client service issues, but rather because we are moving work to locations with the most efficient platforms for serving our clients’ needs. To the extent possible, we’d like employees to continue with the company and we will review transfer opportunities with them.”
Quad/Graphics is on target to achieve approximately $225 million in pre-tax net annualized synergies within 24 months of closing on its transaction with Worldcolor.
“While we are very focused on achieving synergies, we are equally focused on serving our customers and building a foundation for future growth and success,” Mr. Quadracci said. “Now more than ever we are innovative people redefining print and we have the expanded resources and talent to help clients maximize the effectiveness of print as part of a multichannel communications strategy.We are excited about the future of print, our company and the industry.”
The company will discuss its integration strategy in more detail during its upcoming conference call scheduled for Wednesday, August 11th, at 10:00am ET. The call can be accessed by phone as follows:
Dial in the Conference Access Number: 866-206-0240 or 646-216-7221
Enter the Participant PIN Code: 405836#
At the prompt, record the required details: Full Name and Company Name
The audio portion of the call and the slide presentation will be webcast live. A link to the webcast can be accessed on the investor section of the Quad/Graphics website:
Quad/Graphics (NYSE: QUAD) is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts and circulars, direct mail products, books and directories. Headquartered in Sussex, WI (just west of Milwaukee), the company has approximately 28,000 employees working from locations throughout the United States, Canada, Latin America and Europe. As a printing industry innovator, Quad/Graphics (www.QG.com) is redefining the power of print in today’s multimedia world by helping its clients use print as the foundation of multichannel communications strategies to drive their top-line revenues.