Chatham Asset Management completes RRD buy

28 February 2022

Business

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Chatham Asset Management has finally completed its acquisition of R.R. Donnelley, with affiliates of Chatham acquiring the business for $10.85 (£8.10) per share in cash.

The deal in its current form was previously announced on 14 December 2021 when the all-cash transaction was said to have a total enterprise value of over $2bn. RRD stockholders approved the transaction at the special meeting of stockholders held on 23 February 2022.

In early November the US-headquartered multichannel marketing and business services group had looked set to be acquired by affiliates of Atlas Holdings for $8.52 per share in cash but later in the month Chatham entered the frame with an offer of $9.10 per share in cash. Various back and forth movement followed between RRD and the two bidders, with an unnamed strategic party also at one point submitting its own offer.

With the completion of the transaction, RRD expected its common stock to cease trading on the New York Stock Exchange before market open today (28 February). In connection with the completion of the deal, meanwhile, Thomas J. Quinlan has assumed the role of president and CEO of RRD.

“We are excited about the next chapter in RRD’s journey, and I am personally thrilled to be leading the company once again,” said Quinlan.

“Importantly, I am grateful to RRD’s employees, whose dedication and hard work have contributed to the company’s success and momentum. Together with Chatham, we expect we will remain the industry leader in marketing and business communications and continue to meet the evolving needs of our clients.”

Quinlan has significant experience leading and growing B2B manufacturing and services companies. He previously served as president and CEO of RRD from 2007 to 2016, and chairman, president, and CEO of LSC Communications from 2016 to 2020 following its spin-off from the company.

“We are pleased to finalise our acquisition of RRD and officially embark on our partnership with the company. We look forward to working with Tom and his talented team and are optimistic about what lies ahead for RRD,” said Evan Ratner, partner and portfolio manager at Chatham.

In its full-year results for 2021 released last week, RRD posted net sales of $4.96bn, up 4.1% on the $4.77bn it achieved in 2020.