01.28.20
Quad/Graphics, Inc. announced that it has reached a definitive agreement to sell its Omaha packaging plant for $40 million to Graphic Packaging International. The transaction is expected to close on or about Jan. 31, 2020, and Quad will use proceeds from the sale to reduce debt.
“The Omaha plant’s focus on high-volume, low-cost converting for folding cartons is a great fit with a vertically integrated supplier like Graphic Packaging, which operates both paperboard mills and converting facilities,” said Joel Quadracci, chairman, president and CEO of Quad. “We have a very talented, customer-focused team in Omaha, backed by excellent manufacturing capabilities, and we wish them well as part of the Graphic Packaging network.
“This divestiture allows us to focus on our higher value packaging solutions that help clients create a cohesive brand experience across all channels – from consumer packaging to print, broadcast and digital advertising to in-store signage and displays,” added Quadracci. “As part of our one-of-a-kind integrated marketing platform, our packaging solutions sup-port speed-to-market through strategy and creative, structural design, package performance testing, prepress, printing and logistics, and more.”
Quad continues to invest in and grow its core packaging platform, which consists of plants in Franklin, WI; Spartanburg, SC; Leominster, MA; and Santo Domingo, Dominican Republic. In 2019, the company successfully expanded packaging operations to the northeastern US by re-equipping its existing Leominster, MA, commercial printing plant. Today, the Leominster plant serves a variety of packaging clients in multiple market verticals. In 2020, Quad plans to expand its packaging operations in the Dominican Republic, adding a 30,000-square-foot addition, as well as new equipment including two presses, a die cutter and a folder-gluer.
“The Omaha plant’s focus on high-volume, low-cost converting for folding cartons is a great fit with a vertically integrated supplier like Graphic Packaging, which operates both paperboard mills and converting facilities,” said Joel Quadracci, chairman, president and CEO of Quad. “We have a very talented, customer-focused team in Omaha, backed by excellent manufacturing capabilities, and we wish them well as part of the Graphic Packaging network.
“This divestiture allows us to focus on our higher value packaging solutions that help clients create a cohesive brand experience across all channels – from consumer packaging to print, broadcast and digital advertising to in-store signage and displays,” added Quadracci. “As part of our one-of-a-kind integrated marketing platform, our packaging solutions sup-port speed-to-market through strategy and creative, structural design, package performance testing, prepress, printing and logistics, and more.”
Quad continues to invest in and grow its core packaging platform, which consists of plants in Franklin, WI; Spartanburg, SC; Leominster, MA; and Santo Domingo, Dominican Republic. In 2019, the company successfully expanded packaging operations to the northeastern US by re-equipping its existing Leominster, MA, commercial printing plant. Today, the Leominster plant serves a variety of packaging clients in multiple market verticals. In 2020, Quad plans to expand its packaging operations in the Dominican Republic, adding a 30,000-square-foot addition, as well as new equipment including two presses, a die cutter and a folder-gluer.