RR Donnelley to split in three

Reuters: Printing services company RR Donnelley & Sons Co said it plans to split itself in three by spinning off its financial communications and retail print businesses into two publicly traded companies.

The spinoffs, expected before the end of next year, will be in the form of a tax-free distribution to shareholders, RR Donnelley said on Tuesday.

The financial communication services company, which had net sales of about $1 billion in 12 months ended 30 June, will offer services such as content management, distribution, data analytics and business reporting tools.

The publishing and retail print services company, which had net sales of about $3.5 billion in the period, will focus on producing periodicals, catalogs and office products.

The remaining company, with sales of about $7 billion, will offer customised digital and printed communications services such as direct mail, statements, creative design, business process outsourcing and supply chain management.

“We see a significant opportunity to unlock value by allowing these three businesses to pursue their own strategies and invest according to the unique dynamics of their respective industries,” Chief Executive Thomas Quinlan said in a statement.

Centerview Partners LLC and BofA Merrill Lynch are financial advisers and Sullivan & Cromwell LLP is legal adviser.