Quad/Graphics, Inc. (QUAD) announced that it has completed the acquisition of Brown Printing Company for a net purchase price of $100 million. Quad/Graphics used cash on hand and drew on its revolving credit facility to finance the acquisition.
The company expects the acquisition of Brown will enhance the many ways it helps publishers and marketers drive top-line revenues while better controlling their overall total cost of print production and distribution.
Quad/Graphics said it expects Brown to generate about $350 million in revenues during fiscal year 2014 and that the acquisition will be accretive to earnings with a purchase price multiple less than four times Adjusted EBITDA. The combined entity will realize efficiencies and cost-savings through a superior and more efficient operating platform and procurement programs.
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