Your mailbox may be filled with Quad/Graphics' handiwork. A leading US printing company, Quad/Graphics produces catalogs, magazines, books, direct mail, and other commercial material. The company's services include production, design, photography, binding, wrapping, and distribution. Quad/Graphics has produced catalogs for Bloomingdale's, books for National Geographic, and magazines such as Time Inc.'s People. The company operates facilities in about 20 countries around the world. Quad/Graphics was founded in 1971 by the late Harry Quadracci.
Quad/Graphics serves a diverse base of about 7,900 clients from 153 facilities located in more than 20 countries throughout North America, Latin America, and Europe. The company's international segment accounted for roughly 12% of total revenue in fiscal 2012.
Sales and Marketing
Quad/Graphics' growth strategy is also focused on consistent contract wins and renewals. In 2012 the company became an exclusive printer of retail inserts for Rite Aid Corporation under a new multiyear agreement.
The company's revenue decreased by 5% in fiscal 2012 as compared to fiscal 2011. Quad/Graphics reported about $4 billion in revenue for fiscal 2012, down from the $4.3 billion it brought in during fiscal 2011. However, revenue in fiscal 2012 was much higher than the $3.4 billion Quad/Graphics claimed in fiscal 2010.
In a significant move that switched Quad/Graphics' North American growth trajectory from Canada to Mexico, in 2011 and 2012 the company swapped several assets with Montreal-based print company Transcontinental. As part of the exchange, Quad/Graphics acquired three of Transcontinental's facilities in Mexico and sold all but one of its eight Canadian facilities to Transcontinental (Quad/Graphics retained its Vancouver facility). Quad/Graphics decided that operations in Canada would have required a substantial capital investment, while it views Mexico has having higher growth potential. It also reported that the Canadian business had underfunded pension obligations.
Mergers and Acquisitions
Quad/Graphics acquired marketing services provider Vertis for a net purchase price of $170 million in January 2013. It is using Vertis to enhance its position as a leader in retail advertising inserts, direct marketing, and in-store marketing. The company will provide continuity, financial stability, and ongoing business investment for Vertis' clients and employees.
The family of company founder Harry Quadracci controls the firm through ownership of its high-voting Class B shares.
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