RR Donnelley To Sell Package Logistics Business; Retains Print Logistics, Fulfillment, Distribution
Press release from the issuing company
CHICAGO, Aug. 2 -- R.R. Donnelley & Sons Company announced today that it has reached an agreement to sell its package logistics business to Heritage Partners, Inc., a Boston-based private equity firm that is the principal owner of American Package Express ("APX"). The agreement is subject to regulatory approval and is expected to close by the end of the third quarter, 2004.
Under terms of the agreement, RR Donnelley will receive cash in exchange for the assets and liabilities of its package logistics business, which includes CTC Direct, Inc., a wholly-owned subsidiary of RR Donnelley. RR Donnelley's package logistics business consolidates and mails small parcels to homes in the United States. RR Donnelley will retain its print logistics, fulfillment and distribution businesses and will continue to provide third-party logistics management services.
"This is an important step for RR Donnelley," said Mark A. Angelson, RR Donnelley's Chief Executive Officer. "We are exiting a non-core business that has required considerable management time in the past, and the continued ownership of which would be inconsistent with our strategic and financial goals. By continuing in the print logistics business, we retain control over the distribution of our printed material and can ensure that our clients continue to receive the quality service and predictable delivery they have come to expect from RR Donnelley."
"Heritage and APX have a proven track record in operating package logistics businesses," said Daniel Scapin, President of RR Donnelley's Logistics Group. "APX has been RR Donnelley's largest vendor of secondary logistics services. We expect that their expertise will lead to increased opportunities for our package logistics employees following the close of the transaction."
"We are very excited that our principal shareholder has the opportunity to acquire RR Donnelley's package logistics business," said Brad Garberich, President and CEO of APX. "We have enjoyed a very productive relationship with RR Donnelley's Logistics Group over the past several years. With RR Donnelley's package logistics business under common ownership with APX, we are highly confident we can provide an even more compelling value proposition to our customers."
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