R.R. Donnelley & Sons Co. (Nasdaq: RRD) is set to buy Consolidated Graphics Inc. for about $620 million, or $62 per share, in a cash-and-stock deal.
The transaction has been unanimously approved by the boards of both companies.
Consolidated Graphics should allow Donnelley to expand its footprint in the commercial printing market, according to a statement by Donnelley chief executive Thomas Quinlan. The Houston-based target provides digital and commercial printing services.
Consolidated Graphics shareholders will receive $34.44 in cash and 1.651 of RDonnelley shares for each outstanding share of Consolidated Graphics they own. R.R. Donnelley will also assume Consolidated Graphics' debt.
The deal is slated to close in the first quarter of 2014.
Donnelley, based in Chicago, is a provider of integrated communications namely print services. Consolidated Graphics is the company’s first deal since December 2012 when it picked up visual graphics company Meisel Photographic Corp.