- Sale supports the strategic transformation of Gruner + Jahr
- Printing services are no longer part of G+J's long-term strategy
- Transaction involves the acquisition of the three printing plants in Waseca, Woodstock and East Greenville including the transfer of employees
- Agreement is subject to customary closing conditions, including U.S. regulatory clearances
Hamburg – April 7, 2014 – Gruner + Jahr sells its printing business in the United States, Brown Printing Company (BPC), to Quad/Graphics, Inc.* (QG). The transaction involves the acquisition of the three printing plants in Waseca, Woodstock and East Greenville including the transfer of employees and obligations belonging to Brown Printing.
BPC is part of G+J Printing and Publishing Co. and is the last remaining operational G+J business in the United States after the U.S. publishing business was sold in 2005. This sale supports the strategic transformation of G+J from a traditional magazine publisher into a creative house of content. The transaction is subject to customary closing conditions, including U.S. regulatory clearances.
G+J has strategically positioned itself as a house of content and sees its core business as offering readers and users content across all relevant platforms (both print and digital) and to market these target groups to advertisers. Therefore, G+J made the decision to sell BPC and its printing plants, which are currently operated separately from other G+J businesses, and instead sharpen its strategic focus on the further development of its core businesses in the European magazine market.
BPC was founded in 1957 in Waseca/Minnesota. G+J acquired BPC in 1979, after the company had opened a printing plant in East Greenville/Pennsylvania in addition to its original site in Waseca/Minnesota. In the following years, numerous acquisitions but also disinvestments were made. The customer base was continually expanded and includes TIME, Meredith, Hearst and Bauer US, as well as numerous specialist and customer magazine publishers. Today, about 1,000 magazine and catalogue titles are produced for approximately 600 customers. BPC employs a workforce of around 1,850 people.
Oliver Radtke, Chief Operating Officer and Member of the Board, Gruner + Jahr: "The sale of Brown Printing Company means a break in our company history but it is a significant milestone in the realization of our transformation strategy. The sale of Brown Printing is a logical step on our way from a former printing and publishing house towards a creative house of content. Until today, Brown Printing has for many decades significantly contributed to the financial success of Gruner + Jahr. On behalf of the entire Executive Board, I want to thank the management team under the leadership of CEO Mike Amundson for all their contributions and the trustful collaboration. I also want to thank all employees for their excellent work and high level of dedication. I am convinced that Quad/Graphics is the best owner to give Brown Printing a successful long-term perspective."
* Quad/Graphics is a publicly traded company on the New York Stock Exchange (NYSE: QUAD). For any inquiries regarding financial details of this transaction please contact Quad/Graphics directly.
Gruner + Jahr AG & Co KG
Executive Vice President Corporate Communications
Phone +49 (0) 40 / 37 03 - 3113
Telefax:+49 (0) 40 / 37 03 - 5617
Director of Corporate Communications
Phone +1 (414) 566-2955
Brown Printing Company
Jennifer C. Bergin
Vice President Marketing
Phone +1 (212) 782-7857