There has been a great deal of speculation on the part of industry pundits about RR Donnelley’s real intent in acquiring Consolidated Graphics (CGX).  Wayne Peterson, in a recent WhatTheyThink article, presented a logical perspective on the deal. And I can’t disagree with anything he said.

But one wonders what RR Donnelley will ultimately do with the 70+ CGX locations and how many of their presidents will choose to stay if given the opportunity.  The two companies have very different cultures.  With CGX leadership, the presidents had a fair amount of autonomy and were able to present a local face to their markets. RR Donnelley appears to be much more autocratic in its management style.  Peterson stated, “What Quinlan and RR Donnelley are getting from CGX is a network of commercial printing companies concentrated where their Fortune 1000 customers are headquartered.”

It should be noted, however, that according to an August 5, 2013, article in Crain’s Chicago Business, RRD CEO Tom Quinlan has already shut 27 plants and eliminated 14,000 workers since taking on the CEO role in April 2007. During that same period, the company has made 17 acquisitions (not including CGX). It is highly likely that some percentage of the CGX facilities will share the same fate.