Print Giants Merge
A merger of two prominent commercial print companies will create one of the largest providers of print in the world.
More Corp. of Mississauga, Ontario, and Wallace Computer Services of Lisle, Ill., will combine its resources and become Moore Wallace. Moore's U.S. headquarters are in Stamford, Conn.
Though the new company will retain both names, the transaction appears to be an acquisition, as Moore will pay about $1.3 billion in cash and common shares, as well as the assumption of $120 million of Wallace debt.
To complete the deal, Moore will issue approximately 44.2 million common shares to Wallace shareholders who will own approximately 28% of the combined company.
Wallace and Moore board of directors unanimously approved the deal, which now awaits Wallace shareholder approval. Moore will finance the cash portion of the deal through money it has on hand, and financing led by Citigroup/Salomon Smith Barney Inc., Deutsche Bank AG/Deutsche Bank Securities Inc. and Morgan Stanley.
In a release Mark Angelson, CEO of Moore, said the acquisition gives the company a strong customer base and a diversified manufacturing platform. His also said Moore Wallace will provide its customers a broad set of print management solutions. Angelson becomes CEO of Moore Wallace.
David M. Jones, CEO of Wallace, said in a statement the new company would grow on the strength of what the combined company can offer its clients.
"Our new company will provide customers with the most innovative and cost effective solutions for all their printing needs," the statement read. "We will clearly be the industry leader."
Jones and two other Wallace board members will be offered positions on the Moore Wallace board of directors.
When the merger is complete, Moore Wallace will have approximately $3.6 billion in annual revenue and over 18,500 employees worldwide. The company expects to save $50 million on an annualized basis from asset rationalization, elimination of redundant overhead and duplicate IT expenditures.