RR Donnelley, Orchard Brands in $175 million print deal

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R.R. Donnelley & Sons Co. has signed a $175 million multiyear agreement with multi-channel merchant Orchard Brands to provide 100% of the retailer's catalog printing and postal logistics services.

The deal renews and expands RR Donnelley's relationship with Orchard Brands.

“RR Donnelley's leadership in co-mailing, innovative Variable Trim Binding technology, and postage optimization software tools will continue to deliver enhanced value to our catalog marketing programs,” said Maura Lyons, VP of print production at Orchard Brands, in a statement.

Orchard Brands is a leading multi-channel retailer of apparel and home products focused on consumers above the age of 55. Its catalogs include Appleseed's, Bedford Fair Lifestyles, Blair, Draper's & Damon's, Haband and WinterSilks.

Last week, the commercial printer signed a $500 million, multiyear agreement with Publishing Group of America, publisher of American Profile, Relish and Spry. The deal covers printing, logistics and premedia services.

The company also recently reported net sales in the fourth quarter of 2008 totaled $2.8 billion, down 9.5% from the previous year, saying the decrease was caused by volume declines, unfavorable foreign exchange rates and the worsening global recession.

RR Donnelley reported a fourth-quarter net loss from continuing operations of $686.9 million, or $3.35 per diluted share, compared to a net loss from continuing operations of $292.9 million, or $1.37 per diluted share, in the fourth quarter of 2007.


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