October 31, 2018 / 10:34 AM / 16 days ago

Printing firm Quad/Graphics to buy peer LSC in $1.4 billion deal

(Reuters) - Printing services firm Quad/Graphics Inc (QUAD.N) said on Wednesday it would buy peer LSC Communications (LKSD.N) in an all-stock deal valued at about $1.4 billion, to expand its footprint in the industry.

LSC shareholders will receive 0.625 shares of Quad Class A common stock for each LSC share they own.

The deal represents a premium of 34 percent to LSC Communications shareholders, based on share prices of both companies as of Tuesday’s close.

Sussex, Wisconsin based Quad/Graphics produces catalogs, magazines, books, direct mail, and other commercial materials.

The deal is expected to add to the company’s earnings and save about $135 million in less than two years.

Quad Chief Executive Officer Joel Quadracci will head the combined company.

Shares of the Chicago, Illinois based LSC Communications rose 4.7 pct at $8.89 in premarket trade.

Quad is advised in this transaction by J.P. Morgan Securities LLC, BDT & Company and Foley & Lardner LLP, while LSC Communications is advised by BofA Merrill Lynch and Sullivan & Cromwell LLP.

Reporting by Vibhuti Sharma in Bengaluru; Editing by Sai Sachin Ravikumar and Shailesh Kuber

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