After a long acquisition spree that saw the company move far beyond its base in printing, R.R. Donnelley announced Tuesday morning that it will split into three companies by the end of 2016.
The company that will be focused on providing print services is being called—at least for now—Publishing and Retail-Centric Services Company (PRSCo). According to information supplied by Donnelley, in the 12 month period ended June 30, 2015, the operations that will make up PRSCo had sales of about $3.5 billion. PRSCo has been built through a series of acquisitions, the most recent being its purchase of Courier Corp. in June for $261 million.
The two other companies formed fromed by the split will be Financial Communications Services Company (FinancialCo) and the Customized Multichannel Communications Management Company (CMCo). FinancialCo will be focused, as the name implies, on financial services; for the twelve month period ended in June, the divisions that will make up the company had a combined annual revenue of about $1 billion. CMCo will assist organizations around the world in creating, managing and executing their multichannel communications strategies; its divisions has annual sales for the period of about $7 billion.
In a statement, Donnelley CEO Thomas Quinlan said the company sees "a significant opportunity to unlock value by allowing these three businesses to pursue their own strategies and invest according to the unique dynamics of their respective industries. Each company will have the strategic focus, management resources and capital structure to enable it to strengthen its market position and pursue its growth opportunities, enhancing long-term value for stakeholders.”
Donnelley anticipates that the spinoff will be accomplished by providing Donnelley shareholders with stakes in FinancialCo and PRSCo. Details such as management teams for the different companies will be released as the spinoff moves forward.
