The American printing giant Quad/Graphics recently announced its exit from the European
printing production business. The company has sold its printing operations on the continent
to a private equity group called Capmont. Capmont plans to transform this part of the business
into a regional leader in European printing and integrated marketing solutions.
Quad/Graphics’ European operations date back to 1998 when the company partnered with Poland’s
Winkowski Printing Company to establish a production base in Europe. In 2008, Quad/Graphics
fully acquired the business and renamed it Quad/Graphics Europe. In 2015, the company acquired
point-of-sale expert Marin’s International and renamed it Quad POS.
However, Quad/Graphics’ European operations have seen a decline in performance in recent years.
In 2023, the production sales revenue for this segment was $160.2 million, down $21 million
year-on-year. The transaction amount is €41 million. The buyer, Capmont, is a private equity group
focused on investing in small and medium-sized companies in Europe, and this acquisition marks
its first investment in the printing industry.
The transaction involves Quad’s wholly-owned 65,800-square-meter printing manufacturing
plant located in Wisków, Poland, a POS network across Europe, a Peppermint agency based
in Warsaw, and all related employees. Notably, employees providing shared services for Quad’s
integrated marketing platform in Poland are not included in this transaction.
In 2016, after RR Donnelley split into three independent businesses, its Polish printing division
became part of LSC Communications. LSC’s operations in Poland have a significant production
scale, including three web offset printing plants, a prepress business center located in Warsaw, and
well-established logistics and warehousing facilities. Its advanced equipment configuration includes
23 web offset printers and 5 sheet-fed offset printers, with a total workforce of over 2,000.
Following the completion of this transaction, Walstead Group will further expand its production
footprint in Europe, acquiring 19 production facilities and employing over 4,400 people. Its
production capacity will also significantly increase, boasting 70 web printing machines and 4
gravure printing machines, processing over 900,000 tons of paper annually. LSC Poland’s
operations will be integrated into Walstead Group, becoming its new regional division—Walstead
Poland.
According to Quad/Graphics' previously released second-quarter performance results for the period
ending June 30, 2024, net sales for Q2 2024 amounted to $634 million, a 10% decline compared to
the same period in 2023, primarily due to a decrease in print volumes, an increased share of lower
priced gravure and offset printing in magazine and catalog products, and a decline in sales of paper
and agency solutions, including the loss of a major supermarket client.
The adjusted EBITDA for Q2 2024 was $52 million, compared to $50 million in the same period of
2023, mainly due to similar reasons for the improvement in net loss. “In the second quarter, we
continued to focus on positioning ourselves as a marketing experience company, including
investments in innovative solutions and exceptional talent,” stated Joel Quadracci, Chairman,
President, and CEO of Quad. “We have consolidated all creative business lines under a single
agency called Betty, combining the agency’s strategic creative services with our global production
platform to deliver highly scalable content at a faster pace without sacrificing brand consistency or
quality.”
