Quad/Graphics to buy rival World Color

US commercial printing company Quad/Graphics Inc said on Tuesday it has agreed to acquire Canadian rival World Color Press, in a bid to increase its reach and its range of services. The deal will create North America's second-largest commercial printer by sales, behind industry leader R.R. Donnelley & Sons Co. "This transaction allows us to expand our geographic scope by entering the Canadian marketplace and certain Latin American markets where we currently do not have a presence," said Quad/Graphics' Chief Executive Joel Quadracci, in a statement. The two companies did not announce a definitive deal value at this time, but the transaction is expected to be worth between $1.3bn and $1.4bn. Once the deal is complete, Quad/Graphics' shareholders will hold about 60 per cent of the combined entity's shares, while Worldcolor shareholders will own the remainder of the new company. The combined entity is expected to generate annual revenues of over $5bn. Quad/Graphics' estimates that the combined company will generate about $225m in annualized savings within 24 months of closing. The deal is expected to close in the summer of 2010, the two companies said in a joint statement.