Aug 6, 2015
As part of its investor presentation earlier this week, R.R. Donnelley announced plans to split into three publicly traded companies, each with a different focus. These companies will be Customized Multi-Channel Communications (CMCo), Financial Communications Services (FinancialCo), and Publishing & Retail-Centric Print (PRSCo). Describing the move as a “transformative separation,” R.R. Donnelley positions this as the next stage in the company’s evolution from a print & ship model to a multi-channel communication services model that leverages data analytics, content optimization, and multi-channel marketing. The transaction will take the form of a tax-free spin-off of the financial and publishing/retail components and is expected to be completed by the end of 2016. The customized multi-channel media communications component will retain R.R. Donnelley’s outstanding notes/debt and will receive cash proceeds from the sales of the two other components. Existing R.R. Donnelley shareholders will end up owning shares in all three companies. No specifics were provided in regard to the management teams for each component. That will come later.
Source: R.R. Donnelley & Sons Company Investor Presentation, August 4, 2015
R.R. Donnelley has net sales of about eleven and a half billion dollars. The three planned companies break out as follows: Read more »