Chatham Asset Management completes acquisition of RRD

GaryPageau , ,

Shareholders of R.R. Donnelley & Sons Co. (RRD) voted Feb. 23 to approve the sale of the company to Chatham Asset Management, LLC, bringing to a close one of the most convoluted acquisitions in recent years. The final price, announced on Dec. 14, 2021, was $10.85 per share (about $2.3 billion). The deal concludes competing bids from secret buyers and other competing firms. The bidding war boosted the price of the deal from the original Chatham proposal of $7.50 a share for the 85% of shares it didn’t already own. (Photo printing app Motif Photos is owned by RR Donnelly.)

With the completion of the transaction, RRD expects its common stock will cease trading on the New York Stock Exchange before the market opens on Feb. 28, 2022. In connection with the completion of the transaction, Thomas J. Quinlan III has assumed the role of President and Chief Executive Officer of RRD, replacing Dan Knotts, former president and CEO, RRD.

Thomas Quinlan III, president and CEO, 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 is no stranger to RRD, as he served as the CEO of RRD from 2007 to 2016, when RRD was split into three separate, publicly-held companies, according to Printing Impressions. Following the split, he served as CEO of LSC Communications from 2016 to 2020, departing when LSC filed for Chapter 11 protection and its assets were acquired by Atlas Holdings.

“We are pleased to finalize 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.