LSC Strikes Two Major Deals: One With RRD, One With Trend Offset Printing

It's been a big week for Chicago-based LSC Communications. Not only did the company announce a definitive agreement with Chicago-based R.R. Donnelley (RRD) to acquire the Print Logistics component of RRD's business, it also announced an agreement with Trend Offset wherein Trend will acquire LSC's retail offset printing facilities.

The acquisition of RRD's Print Logistics business, which is expected to close in Q3 of 2018, will give LSC a portfolio of logistics services and technology for print distribution and mail supply chain optimization, and will provide solutions to utilize available postal discounts, according to a press release.

“As we continue to strengthen LSC’s logistics solution offering, the combination of RRD’s Print Logistics with our recent acquisitions of Fairrington and The Clark Group greatly expands our national footprint," George Zengo, president of LSC Logistics, said in the release. "This gives LSC the natural synergies and scale to improve service and add more value to our current client base, as well as extends our reach deeper into a variety of other industries."

As Zengo mentioned, this acquisition is the third of its kind in the past year positioned to expand LSC's focus on print and non-print capabilities. In July 2017, LSC acquired Fairrington Transportation, a full-service mailing and logistics provider. Shortly following that acquisition, LSC announced in November that it would acquire The Clark Group, a third-party logistics provider of distribution, consolidation, transportation management and international freight forwarding services.

As part of another strategic business decision, LSC announced that it has entered into a definitive agreement with Los Alamitos, Calif.-based Trend Offset Printing in which Trend will acquire LSC's retail offset printing facilities. This deal, which is expected to close in Q2, includes LSC's newspaper inserts business, according to a press release.

“LSC’s priority is to create a seamless transition for our retail offset clients," John Coyle, president of LSC’s Catalog and Retail business, said in the release. "With Trend as a strong leader in retail offset printing and LSC’s continued focus on our key growth areas, such as new technologies, digital solutions, postal optimization and logistic services, this direction will provide the greatest opportunity for both companies to deliver even more value for our clients.”

Publicly held LSC Communications (No. 3 on the 2017 Printing Impressions Top 400 list, which can be accessed by clicking here) and R.R. Donnelley (No. 1 on the list) are both billion-dollar companies, reporting $3.65 billion and $6.9 billion in most recent fiscal year sales, respectively. Privately held Trend Offset, which clocked in at No. 18 on the 2017 PI 400 list, reported revenues of $300 million for its latest fiscal year.

Prior to these latest transactions, in February LSC had broken down its product and service capabilities as 48% magazines, catalogs and retail inserts; 28% books; 14% office products; 3% directories, and 7% Europe. Trend Offset broke down its primary specialties on the latest PI 400 ranking as being 50% publications, 35% inserts, 10% catalogs and 5% directories.