Quad/Graphics purchases minority interest to expand geographic footprint
SUSSEX, Wis.--(BUSINESS WIRE)--Mar. 30, 2012--
Quad/Graphics, Inc. (NYSE:QUAD), a global provider of print and related
multichannel solutions, has entered into a strategic partnership with
Manipal Technologies Ltd. (ManipalTech), India’s largest print services
and end-to-end business solutions provider. Under the agreement,
Quad/Graphics has purchased a minority interest in Manipal Technologies,
expanding Quad/Graphics’ geographic reach to Asia, and broadening its
product and service scope.
“This investment expands our global presence, giving us a strong
foothold in another emerging market with a large and growing middle
class that is attractive to marketers and publishers,” said Joel
Quadracci, Chairman, President & CEO of Quad/Graphics. “Additionally,
this partnership supports a key component of our growth strategy, which
is to invest in geographies and segments where we can be a market leader
through a diverse product offering, and a superior and efficient
operating platform. We are proud to partner with a reputable,
forward-thinking company like ManipalTech, which shares our commitment
to advancing the effectiveness of print in a multichannel media world.”
ManipalTech is a leading printer of security products, such as debit and
credit cards, bank checks and drafts, high-security revenue-assurance
labels, pre-paid phone cards, gift vouchers and personalized holograms,
as well as marketing, branding and communications products, including
magazines, catalogs, books, brochures, annual reports, consumer goods
packaging, point-of-purchase displays, envelopes and stationery, manuals
and labels. The company performs work for customers in a variety of
industries, including Publishing, Banking, Financial Services,
Insurance, Telecommunications, Education, Consumer Goods and Retail,
Aviation and Transportation, and the Government. The company is
committed to advancing its product and service offering through research
and development. Currently, it is developing products with embedded
technology; biometrics such as fingerprints and iris recognition;
printed electronics; and interactive print features such as near field
communication (NFC).
“Quad/Graphics’ investment will fuel our growth initiatives, which are
focused on bringing greater capabilities and value to customers across
many industries,” said T. Gautham Pai, Managing Director of ManipalTech.
“We continue to focus on developing solutions that proactively address
our customers’ pain points, needs and value requirements, especially as
consumer preferences change and businesses look to adapt.”
ManipalTech employs more than 2,000 people in multiple production
facilities in Manipal, Chennai, Mumbai and Delhi; R&D and software
development centers in Gurgaon and Manipal; and various sales and office
locations in India. Annual sales approximate USD$90 million.
About Quad/Graphics
Quad/Graphics (NYSE: QUAD) is a global provider of print and related
multichannel solutions for consumer magazines, special interest
publications, catalogs, retail inserts and circulars, direct mail
products, books, directories, and commercial and specialty products,
including in-store signage. Headquartered in Sussex, Wis. (just west of
Milwaukee), the Company has approximately 22,500 full-time equivalent
employees working from more than 50 print-production facilities as well
as other support locations throughout North America, Latin America and
Europe. As a printing industry innovator, Quad/Graphics (www.QG.com)
is redefining the power of print in today’s multimedia world by helping
its clients use print as the foundation of multichannel communications
strategies to drive their top-line revenues.
About Manipal Technologies Ltd.
Manipal Technologies Ltd. (ManipalTech), www.ManipalTechnologies.com,
grew from humble beginnings in 1941 as the back office for India’s
Syndicate Bank into the preferred outsourced service partner to the
entire Indian banking industry. Today Manipal Technologies and its
subsidiaries provide business solutions for facilitating secure
transactions as well as marketing, branding and communications products
for customers in multiple industries. Among its vast product and service
offering are printing, digital content management and digital publishing
solutions for publishers; revenue assurance labels/excise stamps for the
government; checks and debit/credit cards for the banking industry;
pre-paid scratch cards and SIM cards for the telecommunications
industry; brand protection solutions for consumer goods and
pharmaceutical companies; and academia assessment solutions featuring
comprehensive digital evaluation services. PrintWeek India named
Manipal Technologies 2009 Company of the Year and 2011 Consumer Magazine
Printer of the Year. Manipal Technologies Ltd., formerly known as
Manipal Press Ltd., operates as a subsidiary of The Manipal Group of
Companies.
Notes Regarding Quad/Graphics Inc. Forward-Looking Statements
To the extent any statements in this press release contain information
that is not historical, these statements are forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. These forward-looking statements relate to, among
other things, the objectives, goals, strategies, beliefs, intentions,
plans, estimates, prospects, projections and outlook of Quad/Graphics,
Inc. (the "Company" or "Quad/Graphics"), and can generally be identified
by the use of words such as "may", "will", "expect", "intend",
"estimate", "anticipate", "plan", "foresee", "believe" or "continue" or
the negatives of these terms, variations on them and other similar
expressions. In addition, any statements that refer to expectations,
projections or other characterizations of future events or circumstances
are forward-looking statements.
These forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties and other factors,
some of which are beyond the control of the Company. These risks,
uncertainties and other factors could cause actual results to differ
materially from those expressed or implied by those forward-looking
statements. Among risks, uncertainties and other factors that may impact
Quad/Graphics are those described in Item 1A of the company’s most
recent Form 10-K and the following: the impact of significant
overcapacity in the highly competitive commercial printing industry,
which creates downward pricing pressure and fluctuating demand for
printing services; the potential inability of the Company to reduce
costs and improve operating efficiency rapidly enough to meet market
conditions; the impact of electronic media and similar technological
changes; the impact of changing future economic conditions; the
potential failure to renew long-term contracts with customers, the
renewal of those contracts under different terms, or customer
nonperformance in accordance with the terms and for the duration of
long-term contracts; significant capital expenditures may be needed to
maintain the Company's platform and processes and to remain
technologically and economically competitive; the impact of fluctuations
in costs (including labor-related costs, energy costs, freight rates and
raw materials) and the impact of fluctuations in the availability of raw
materials; the impact of regulatory matters and legislative developments
or changes in laws, including changes in environmental and privacy laws
and postal rates, regulations and services; the impact on Quad/Graphics
class A common shareholders of a limited active market for Quad/Graphics
common stock and the inability to independently elect directors or
control decisions due to the class B common stock voting rights; an
other than temporary decline in operating results and enterprise value
that could lead to non-cash impairment charges due to the impairment of
goodwill, other intangible assets and property, plant and equipment; the
liabilities of Worldcolor with respect to pension and postretirement
benefits could grow in the future and create additional costs;
restrictions imposed by various covenants in the Company's debt
facilities may affect the Company's ability to operate its business;
failure to successfully integrate the operations of Quad/Graphics and
Worldcolor; risks associated with the Company's operations outside of
the United States; and the inability to retain and attract additional,
key employees, or the adverse effects of any strikes or other labor
protests.
Quad/Graphics cautions that the foregoing list of risks, uncertainties
and other factors is not exhaustive and you should carefully consider
the other factors detailed from time to time in Quad/Graphics' filings
with the United States Securities and Exchange Commission and other
uncertainties and potential events when reviewing the Company's
forward-looking statements.
Because forward-looking statements are subject to assumptions and
uncertainties, actual results may differ materially from those expressed
or implied by such forward-looking statements. You are cautioned not to
place undue reliance on such statements, which speak only as of the date
of this press release. Except to the extent required by the federal
securities laws, Quad/Graphics undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Source: Quad/Graphics, Inc.
Quad/Graphics, Inc.
Media Contact:
Claire Ho, Director
of Corporate Communications
414-566-2955
Claire.Ho@qg.com
or
Investor
Relations Contact:
Kelly Vanderboom, Vice President and
Treasurer
414-566-2464
Kelly.Vanderboom@qg.com
