It will retain the RR Donnelley name and will produce everything from magazines, telephone directories, books, catalogues, inserts and financial documents to personalised direct mail.
When the deal closes Angelson will become chief executive of the new RR Donnelley, replacing William Davis, who said in July that he would retire when a successor was found.
The deal has been welcomed by US print industry analysts, who say it makes sense strategically.
There is very little overlap but a great deal of opportunities for the two, said CJS Securities analyst Charles Strauzer.
However, he did think it was a risk to combine the groups so soon after Januarys merger of Moore Corporation and Wallace Computer Services to form Moore Wallace.
Merrill Lynch analyst Karl Choi also agreed that the deal threw up some risks, but felt that RR Donnelley would benefit in the long term from Moore Wallaces short-run capacity, particularly in Europe and Asia.
RR Donnelley has UK sites in London, Goldsborough and Flaxby Moor, while Moore Wallace owns supply chain and service support company Peak Technologies, based in Ascot, Berkshire.
Angelson said the timing of the deal was perfect, and that it would change the face of the industry.
We believe this will create a wealth of opportunities for both our customers and employees, by creating a significantly stronger worldwide competitor, he said.
RR Donnelley hopes to make annual cost savings of 60m in the first 12-24 months following the acquisition, through the rationalisation of duplicate administration and infrastructure costs, procurement expenses and assets.
RR Donnelley, which will continue to be based in Chicago, will also take on 540m of Moore Wallaces debt.
Subject to regulatory approval, the deal is scheduled for completion by the end of the first quarter of 2004.
RR Donnelleys third-quarter revenues rose 1% to 718m but net income dipped 13% to 32m.
The results also included restructuring and impairment charges of 1.1m, compared to 14m in the same period last year.
Story by Andy Scott
