Business News

RR Donnelley to Acquire Pro Line Printing, Inc.

Monday 03. March 2008 - $122 Million All Cash Deal For Privately Held Offset Printer Of Retail Inserts Expands Geographic Reach And Capacity

R.R. Donnelley & Sons Company (NYSE: RRD) announced today that it entered into a definitive agreement to acquire Pro Line Printing, Inc., a multi-facility, privately held producer of newspaper inserts headquartered in Irving, Texas, for a total consideration of $122 million. The all cash deal is subject to customary closing conditions and is expected to be accretive to RR Donnelley’s earnings in the first full year of operations.

“Pro Line Printing’s respected capabilities expand our geographic footprint for offset printed tabloid inserts and even better position us to serve national advertising programs,” said Thomas J. Quinlan III, RR Donnelley’s President and Chief Executive Officer. “Pro Line Printing provides immediate production capacity as well as the opportunity to leverage our premedia and logistics resources. We expect that this acquisition will also serve to increase utilization at our other facilities.”

John Paloian, RR Donnelley’s Chief Operating Officer added, “This is a superb addition to our offset platform. Pro Line Printing’s well regarded facilities will combine with our existing offset capabilities in Indiana to serve insert programs across North America and to mirror our gravure insert production platform. Customers will quickly benefit from our increased flexibility and we expect to realize immediate selling, procurement, utilization and other synergies.”

Products Pro Line Printing manufactures are inserted into newspapers, distributed via direct mail and used for in-store circulation. The company has production operations in Arlington, Texas; Reno, Nevada; Avon, Connecticut and Pineville, North Carolina.