Parties
Company
DATA Communications Management Corp.
Company
R.R. Donnelley & Sons
On April 25, 2023, DATA Communications Management Corp. (DCM) completed its acquisition of R.R. Donnelley & Sons' Canadian operations (RRD Canada) for $130.8 million, with final adjustments pending. This acquisition marks a significant step for DCM, as stated by CEO Richard Kellam, enhancing their market presence and innovation capabilities.
The addition of RRD Canada bolsters DCM's presence in the Canadian market, with pro forma revenues exceeding $520 million in 2022. This acquisition expands DCM's product and service portfolio and broadens its enterprise client base across various industries. DCM has set strategic financial goals, including a 5% annual revenue growth rate, an Adjusted EBITDA1 margin over 14%, and reducing net debt to less than 1.0x of Adjusted EBITDA.
RRD Canada President Rael Fisher is appointed as Chief Integration Officer, overseeing the integration of DCM and RRD Canada. Fisher's extensive experience and customer relationships are expected to be vital for the integration process and future growth.
The acquisition terms include Moore Canada Corporation, the legal entity of RRD Canada, becoming a wholly-owned subsidiary of DCM. The funding sources were an amended revolving credit facility of up to $90 million, a $30 million bridge facility, and a $50 million credit facility from Fiera Private Debt.
DCM has also acquired three RRD Canada sites, entering a sale and lease-back arrangement for the Oshawa, Ontario site. The expected $23 million proceeds from this sale will primarily repay the bank bridge facility.
Deal Type
Merger & AcquisitionIndustry
OtherTransaction
$ 130,800,000Deal Status
ClosedClosing Date
25 April 2023