Quad/Graphics has completed the $42m (£33m) sale of its European printing operations
including its huge web offset and sheetfed plant in Poland
The deal was announced last October
Quad/Graphics confirmed that the sale process to German private equity firm Capmont had completed yesterday (3 March)
The transaction includes all employees and facilities at the Quad/Graphics Europe print and ink-manufacturing facility headquartered in Wyszków
Poland (formerly Winkowski prior to Quad acquiring the business in 1998); the Peppermint agency in Warsaw; and the Quad point-of-sale business – including Marin’s International – which has locations throughout Europe
For the year ending 31 December 2024 the European operations had sales of $152.9m
president and CEO Joel Quadracci commented: “The divestiture supports our ongoing strategic focus to optimize our business portfolio for growth as a marketing experience company
“This includes maintaining state-of-the-art print operations in locations that support our ever-evolving MX offering – especially The Americas
with North America comprising our largest base of operations and where we believe we can provide the greatest value to clients through our uniquely integrated marketing platform.”
The sale does not include Quad employees in Poland who support the company’s integrated marketing platform activities in The Americas
Quad will use the sale proceeds to reduce debt and for other investments
The expected net proceeds are around $26.4m
It made a $57.6m impairment charge related to the European sale to reduce the carrying value of the operations
as well as charges for operating lease right-of-use assets
The European business is currently still operating as Quad under its new owners
but Printweek understands a new name will be decided upon in due course
Capmont had not commented on its plans at the time of writing.
AlixPartners served as Quad’s financial advisory firm
and Eversheds Sutherland was the group’s legal advisor
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Operations had sales of more than £120m
Quad/Graphics is exiting European print production with a deal to sell its continental operations to a private equity group that has ambitions to become the regional leader in print and integrated marketing solutions
US-headquartered Quad/Graphics originally established its European base through a partnership with Polish web and sheetfed printer Winkowski back in 1998
A decade later it took over the business and renamed it Quad/Graphics Europe
The group then went on to acquire point-of-sale specialist Marin’s International in 2015
The European operations had production sales of $160.2m (£123.5m) last year
Quad has agreed a €41m (£34m) deal to sell the businesses to Capmont
which focuses on investing in small and mid-cap companies in Europe
It does not currently hold any other printing industry investments
The deal encompasses the 65,800sqm print manufacturing facilities at Wyszków in Poland
which is owned by Quad; the Quad POS locations across Europe; the Peppermint agency in Warsaw; and all related employees
The POS wing runs a raft of large-format digital printing kit
Quad’s shared service employees in Poland who support its integrated marketing platform are excluded from the deal
Quad/Graphics president and CEO Joel Quadracci said the group was focused on maintaining state-of-the-art printing operations in locations that best supported its evolving marketing services offering
with North America comprising our largest base of operations and where we believe we can provide the greatest value to clients through our uniquely integrated marketing platform,” he said
“We will also continue to leverage strategic partnerships that enhance our ability to provide a seamless marketing experience around the globe.”
Capmont managing director Henrik Munte said the businesses being acquired were “renowned for their best-in-class print
“Empowered by highly dedicated and knowledgeable employees
we are convinced that the combination of the company’s state-of-the-art production facilities and award-winning creative agency offers exceptional solutions for customers
“We are highly appreciative of the successful cooperation with Quad throughout the transaction process
Capmont is very much looking forward to supporting the company on its path to becoming the European leader in print and integrated marketing solutions!”
we have made significant investments in our European operations and
have best-in-class equipment and capabilities
we are committed to facilitating a smooth transition for our employees who will continue to deliver the top-quality service our clients have come to expect.”
The deal is expected to complete by the end of the year
Quad will use the proceeds to pay down debt and invest in its MX offering
The company describes itself as “a global marketing experience company”
It had more than 13,150 employees worldwide
The deal means two high profile American printing industry groups have exited European manufacturing. LSC Communications (formerly RR Donnelley) sold its Polish web offset business to Walstead six years ago