LISLE, Ill. (CBS.MW) — Moore said Friday it has inked a deal to acquire Wallace Computer Services for about $1.3 billion and expects the combined corporation to become one of the world’s largest integrated providers of commercial printing, direct mail, labels and forms services.
After the planned merger was announced, shares of Wallace
soared $3.92, or 19 percent, to close at $25.05. Moore
shares rose 12 cents to $10.77.
Ontario, Canada-based Moore will pay $606 million in cash, roughly $460 million in stock, and will assume about $210 million in debt for Wallace, which is headquartered in Lisle, Ill.
Based on Thursday’s closing prices, the deal values Wallace shares at $25.58 each. Each Wallace shareholder will receive about $14.40 in cash, and 1.05 shares of Moore common stock for each Wallace share under the deal’s terms.
Both companies’ boards have sanctioned the merger, but it still awaits approval of Wallace shareholders and regulators.
When combined, the companies said they expect about $3.6 billion in annual revenue and over 18,500 employees worldwide. Excluding merger-related expenses, the deal is expected to immediately add to earnings.
Moore Chief Executive Officer Mark Angelson will also be CEO of the combined company. Also, three of Wallace’s directors will be offered seats on the Moore Wallace board.
View more information: https://www.marketwatch.com/story/moore-buying-wallace-computer-for-13-billion