March 3, 2004 -- (WhatTheyThink.com) -- Friday, the $8 billion merger of Moore Wallace and RR Donnelley was final, and yesterday the company began the reorganization that is the first step toward the $100 million cost savings management predicted when the merger was announced. New and retained executives include: • Suzanne S. Bettman, Senior Vice President and General Counsel of RR Donnelley. Formerly, General Counsel of each of Huron Consulting Group and True North Communications and a partner of Kirkland & Ellis. • Thomas G. Brooker, Group President, Forms, Labels and Office Products of RR Donnelley. Formerly, Group President, Forms, Labels and Office Products of Moore Wallace. • Dean E. Cherry, Group President, Short-Run and Variable Print Solutions of RR Donnelley. Formerly, Group President, Commercial Print, Direct Mail, Business Communications Services and Print Fulfillment of Moore Wallace. Mr. Cherry will add responsibility for Book Publishing Services, Financial Print Solutions, and Telecom and Technologies. • Susan L. Henricks, President, Directories of RR Donnelley. Formerly, President, Telecom of RR Donnelley. • Daniel L. Knotts, Group Executive Vice President, Long-Run Print Solutions of RR Donnelley. Formerly, President, Catalog, Magazines and Retail of RR Donnelley. • Michael S. Kraus, Executive Vice President, Strategy, of RR Donnelley. Formerly, Senior Vice President, Mergers & Acquisitions of Moore Wallace. Mr. Kraus will add responsibility for Treasury, Strategic Planning, and Asia and Europe. • Edward E. Lane, President, Book Publishing Serivces of RR Donnelley. Formerly, President, Book Publishing Services of RR Donnelley. • Robert C. Nelson, President, Corporate Sales of RR Donnelley. Formerly, Executive Vice President, Corporate Sales of Moore Wallace. Mr. Nelson began his career in printing with RR Donnelley in 1987 and has held cross-selling management roles within the industry. • Thomas J. Quinlan III, Executive Vice President, Operations of RR Donnelley. Formerly, Executive Vice President, Business Integration of Moore Wallace. Mr. Quinlan will be responsible for Corporate Sales, Pre-media, Logistics & Distribution, Information Technology, Procurement, Marketing & Communications, Equipment Technology & Engineering, Manufacturing Technology and Real Estate. • Mary Lee Schneider, President, Pre-media Technologies Solutions of RR Donnelley. Formerly, President, Pre-media Technologies of RR Donnelley. • James R. Sulat, Senior Executive Vice President and Interim Chief Financial Officer of RR Donnelley. Formerly, Senior Executive Vice President and Interim Chief Financial Officer of Moore Wallace. • Theodore J. Theophilos, Executive Vice President, Administration of RR Donnelley. Formerly, Executive Vice President, Business and Legal Affairs of Moore Wallace. Mr. Theophilos will add responsibility for Internal Audit, Risk Management and Environmental Health & Safety. • Terry Trayvick, President, Financial Print Solutions of RR Donnelley. Formerly, President, Financial of RR Donnelley. John Campanelli, RR Donnelley president of print solutions, did not make the cut. With more changes to be announced, speculation has been wide spread. One source stated that Marc Reisch and John Paloian, of the old World Color Press, will be joining the new team. RR Donnelley’s representatives would not confirm other appointments, saying that more announcements will be made in the near future. Last November, in a CNBC Dow Jones Business Video, Mark Angelson, in a joint interview with Donnelley’s Bill Davis, called the combination a “merger of equals” and a “long term value play.” But sources close to the company commented yesterday that it now looks more like Moore Wallace bought RR Donnelley, than a merger of equals. The company has stated that RR Donnelley and Moore Wallace will be treated as two separate business units, rather than merged into a single unified company, partly to leverage brand equity in their respective markets. The new organizational chart appears to indicate that the many of the key players are from Moore. The biggest concern voiced relates to the knowledge and experience of Moore executives in regards to markets such as catalog production. Said one insider, “Can you put a Moore Wallace person in a Donnelley business unit where they’ve had no experience in the market, and expect them to manage it well?” Stay tuned for more analysis in the coming weeks. Written by Gail Nickel-Kailing, Senior Editor, WTT You can reach Gail at [email protected]