Sussex, Wis. – Quad/Graphics, Inc. (“Quad” or the “Company”), a leading marketing solutions partner, announced today that it has reached a definitive agreement to sell its Omaha packaging plant for $40 million to Graphic Packaging International (“Graphic Packaging”), a leading provider of packaging solutions to food, beverage, foodservice, and other consumer products companies. The transaction is expected to close on or about January 31, 2020, and Quad will use proceeds from the sale to reduce debt.
“The Omaha plant’s focus on high-volume, low-cost converting for folding cartons is a great fit with a vertically integrated supplier like Graphic Packaging, which operates both paperboard mills and converting facilities,” said Joel Quadracci, Chairman, President & CEO of Quad. “We have a very talented, customer-focused team in Omaha, backed by excellent manufacturing capabilities, and we wish them well as part of the Graphic Packaging network.”
Added Quadracci: “This divestiture allows us to focus on our higher value packaging solutions that help clients create a cohesive brand experience across all channels – from consumer packaging to print, broadcast and digital advertising to instore signage and displays. As part of our one-of-a-kind integrated marketing platform, our packaging solutions support speed-to-market through strategy and creative, structural design, package performance testing, prepress, printing and logistics, and more.”
Quad continues to invest in and grow its core packaging platform, which consists of plants in Franklin, Wis.; Spartanburg, S.C.; Leominster, Mass.; and Santo Domingo, Dominican Republic. In 2019, the Company successfully expanded packaging operations to the Northeastern United States by re-equipping its existing Leominster, Mass., commercial printing plant. Today, the Leominster plant serves a variety of packaging clients in multiple market verticals. In 2020, Quad plans to expand its packaging operations in the Dominican Republic, adding a 30,000-square-foot addition, as well as new equipment including two presses, a die cutter and a folder-gluer.
“We are proud of our packaging platform and our ability to serve premier brands in a variety of geographies and market verticals, including apparel, confectionary, healthcare, beauty, electronics, food and beverage,” Quadracci said.
Mesirow Financial’s Investment Banking Group served as financial advisor to Quad on this transaction.