If you can read it, R.R. Donnelley & Sons can print it. A leading full-service printing company, R.R. Donnelley produces magazines, catalogs, and books, as well as advertising material, business forms, financial reports, and telephone directories. The company offers graphics and prepress services in conjunction with printing. In addition, it provides logistics, distribution, and business process outsourcing services related to getting printed material to its audience. Along with publishers, R.R. Donnelley's customers include companies in the advertising, financial services, healthcare, retail, and technology industries. The company does business mainly in the US, but also in Europe, Asia, and Latin America.
R.R. Donnelley has been hit hard by troubles in the magazine sector, which has shifted toward digital publishing, and the financial-services market, which is printing less prospectuses and related material due to a decrease in the number of public offerings being filed. Despite a modest revenue increase in 2011, the company's net income took a nosedive that year as a result of a $507.1 million pre-tax charge relating to restructuring ($18.6 million) and impairment ($488.5 million) costs in the fourth quarter.
The company uses acquisitions to help gain market share and consolidate the fragmented printing industry, which has a large amount of smaller competitors. These smaller companies have lower overhead, and are able to engage in aggressive competitive pricing that has historically hurt R.R. Donnelley's bottom line.
Mergers & Acquisitions
The company plans to continue its long-term growth strategy of bolstering its operations at home and abroad through acquisitions. Lately it has been using acquisitions to expand its digital holdings. In 2012 it acquired Edgar Online (an online provider of SEC filings) for $70.5 million.
Purchases in 2011 include LibreDigital (digital content distribution services and e-reading software), Helium (writing community and social publishing platform), Journalism Online (e-commerce technology), Sequence Personal (software for digital production), and 8touches (online provider of customization tools for real estate professionals). And in 2010 R.R. Donnelley bought Nimblefish Technologies, a provider of software and services for multimedia marketing campaign management.
A major acquisition was the 2010 purchase of Bowne & Co., a financial documents printer, for about $480 million. R.R. Donnelley used the deal to expand its shareholder, investor, marketing, and business communications offerings for its existing clients. The acquisition also helped the company gain additional clients and employees as well as achieve revenue growth. – less