R.R. Donnelley to Buy Printer–and Gets Catalog in the Bargain

Chicago-based printer R.R. Donnelley & Sons on Nov. 10 agreed to buy Toronto-based business forms printing conglomerate Moore Wallace for $2.8 million in stock. The combined company broadens the 140-year-old Donnelley’s capabilities beyond printing and package distribution. It also will make Donnelley a cataloger: Moore Wallace’s divisions include business labels catalog Veriad/UAL (formerly known as United Ad Label).

Neither company is yet speculating what Donnelley might do with Veriad, if anything. “Both businesses are very complementary to each other; there’s not much overlap,” says Donnelley spokesperson Lisa Mount. “So if Moore has something that Donnelley doesn’t, Donnelley hasn’t had a chance yet to understand that business. Mark [Angelson, Moore Wallace’s president/CEO] and Bill [Davis, Donnelley’s chairman/CEO] and management will figure out what the next steps are.”

While there’s also no telling yet how the merger will affect Donnelley’s catalog customers, a couple of things are certain at this point: Angelson will run the combined company once the deal is complete. In July, Davis announced his intent to retire once a successor was found. What’s more, in comments made to the Canadian press after the proposed deal was announced, Angelson said that the combined company could save $100 million, although he said it’s too soon to tell if any of either companies’ printing plants or factories will be closed.