PW: Donnelley Buys CTC, Doubles Delivery Capacity

R.R. Donnelley Logistics Services, a business unit of R.R. Donnelley & Sons Co. and the largest distributor of catalogues, magazines, books and direct mail in the U.S., has acquired CTC Distribution Direct of Minneapolis, the largest mailer of business-to-home parcels in the country. The purchase doubles the size of Donnelley Logistics, to $800 million in gross sales. CTC's and Donnelley Logistics's deliveries in 1999 totaled more than 130 million packages and 15 billion magazines, catalogues and other print pieces.

William Davis, chairman and CEO of R.R. Donnelley & Sons described the need to facilitate delivery to consumers in an era of burgeoning e-commerce. "The combination of Donnelley Logistics and CTC is well positioned in the $6-billion business-to-home parcel market," he said, "which is growing at 21% per year."

John Clark, CTC's founder and CEO, said that with the merger, "our combined scale will benefit our customers by giving them predictable, more economic delivery."

The combined companies have announced no personnel changes.