Quebecor Printing to Acquire World Color Press

Jim Milliot -- Publishers Weekly, 7/19/1999

Quebecor Printing announced last week that it has agreed to acquire World Color Press for $1.4 billion in cash and stock plus the assumption of $1.3 billion of World Color's debt. When the merger is completed, the new company, to be called Quebecor World Inc., will become the world's largest commercial printer with total revenues of more than $6.2 billion. In 1998, Quebecor Printing had sales of $3.8 billion; World Color posted sales of $2.5 billion. The merger will double Montreal-based Quebecor's U.S. sales.

Following completion of the deal, Charles Cavell, president and CEO of Quebecor Printing, will assume the same positions at Quebecor World. Marc Reisch, World Color's president and COO, will become chairman, president and CEO of the new company's North American operations. Robert Burton, chairman and CEO of World Color, will leave the company after the deal is finalized but will become a member of Quebecor World's board of directors.

The two companies currently employ a total of 44,000 people; some job cuts are expected, especially in corporate and administrative functions and sales. Quebecor reported it expects the merger to result in annual savings of $50 million.

In addition to printing books, the two companies print magazines, inserts and circulars, catalogues and directories. In 1998, book services represented about 9%, or $225 million, of World Color's total revenues. Among World Color's book-related acquisitions in recent years have been Ringier America, Rand McNally Book Services Group and Magna Graphics. Book printing sales at Quebecor Printing, which is a subsidiary of Quebecor Inc., are estimated to represent about 15% of total revenues, or about $570 million. The combined estimated sales of Quebecor and World Color of nearly $800 million will make the new company the largest book printer in North America.