Post Quad/Graphics-Worldcolor acquisition, companies combine forces
Now that Quad/Graphics' acquisition of Worldcolor is complete, Quad is beginning the integration portion of the deal. For starters, the Worldcolor brand will disappear, and as part of absorbing Worldcolor, layoffs are a strong possibility.
Joel Quadracci, chairman, president and CEO declined to comment on any layoffs, but said: “Anytime that you're combining two companies where you are going to be rationalizing parts of it, there's going to be people affected by it.” Quadracci remains chairman, president and CEO of the newly-merged company.
Quad/Graphics becomes a publicly traded company as part of the transaction.
Quadracci said the genesis of the deal was an initial conversation with Mark Angleson, former chairman and CEO of Worldcolor, who approached him. Angleson remains with the company as a member of the board of directors. He also serves as chairman of the integration committee.
Quadracci pointed to synergies within both companies.
Quad/Graphics traditionally focused on magazine, catalog and long-run retail inserts. The deal enables it to add a greater focus on regional inserts, along with book printing, directory and off-set retail inserts, he added.
Sussex, Wisconsin-based Quad/Graphics, through the acquisition, also gains a stronger presence on the West Coast and entry into Canada, as Worldcolor is based in Montreal, Quebec. While both have a presence in South America, Quad/Graphics is now the largest printer there as a result of the deal, Quadracci explained.
Quadracci said there was some client overlap to smooth out, but that the client community has been supportive overall.