Shareholders of Sussex-based Quad/Graphics Inc. and Chicago-based LSC Communications Inc. both signed off on Quad’s acquisition of LSC last week.
The two companies announced the $1.4 billion all-stock acquisition last year. The deal is expected to close in mid-2019 and is still awaiting regulatory approvals.
The combination of the two printing giants will continue the consolidation of the printing industry, which has seen falling volumes amid shifts in publishing and advertising. If Quad and LSC remain separate and take no other actions, the two companies are projecting a decrease in revenues of $1.5 billion by 2022.
Together, the two companies will have a stronger platform that would be well-positioned for the new age of content distribution, executives have said.
“We remain enthusiastic about the value this transaction will create for all clients and shareholders. This business combination will enhance our highly efficient print platform to fuel our Quad 3.0 transformation and strengthen the role of print in a multichannel world,” said Joel Quadracci, chairman, president and CEO of Quad.
Nearly 93 percent of outstanding votes were represented at a special meeting of Quad shareholders held Friday. More than 99.7 percent of votes present supported the acquisition. The Quadracci family and Quad’s directors and executives hold around 78 percent of the company’s voting power.
At the LSC special meeting around 70 percent of outstanding shares supported the deal, including 98 percent of votes cast.
