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Quad Completes Acquisition of Brown

Monday, June 02, 2014

Press release from the issuing company

SUSSEX, WI and WASECA, MN – Quad/Graphics, Inc. ("Quad/Graphics") announces the completion of its acquisition of Brown Printing Company ("Brown") for a net purchase price of $100 million. Quad/Graphics used cash on hand and drew on its revolving credit facility to finance the acquisition.

The Company expects the acquisition of Brown will enhance the many ways it helps publishers and marketers drive top-line revenues while better controlling their overall total cost of print production and distribution.

"Brown is an ideal fit with Quad/Graphics and the acquisition supports our ongoing strategy to transform both our company and the industry to create value for our clients, employees and shareholders," said Joel Quadracci, Chairman, President & CEO. "As Brown's employees and operations join our worldwide platform, Quad/Graphics is better positioned than ever to help magazine publishers and catalog marketers capitalize on the power of print and integrated media solutions to further drive results. I am excited to welcome Brown employees and clients to Quad/Graphics’ family and begin working as one combined company."

Mike Amundson, Brown's President and CEO, added: "I am confident there is no better home for Brown’s employees and clients than Quad/Graphics. We fit well together, sharing a similar corporate culture and values system, a passion for innovation, and a commitment to providing our clients exceptional service and quality. In my opinion, our newly combined enterprise will offer publishers and marketers the best options for revenue-generating and cost-saving solutions."

Quad/Graphics expects Brown to generate approximately $350 million in revenues during fiscal year 2014 and that the acquisition will be accretive to earnings with a purchase price multiple less than four times Adjusted EBITDA. The combined entity will realize efficiencies and cost-savings through a superior and more efficient operating platform and procurement programs.

"Now that the acquisition is complete, we will move forward quickly to integrate Brown's operations with our own while keeping a sharp focus on performance for both new and existing clients," Quadracci said. "Given the many similarities between our companies -- including a culture of employee empowerment, innovation and doing right by our clients -- we anticipate a smooth integration process. Clients will benefit from our commitment to performance excellence."

The combined company employs more than 25,000 employees and operates more than 70 print-production facilities worldwide.

Quad/Graphics was advised in this transaction by Foley & Lardner LLP. Brown was advised by Baker Hostetler.


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