Quad sells its QuadExpress 3PL logistics business
The sale of the division to Mullen Group Ltd. supports Quad’s strategy to optimize its portfolio of products and services
Sussex, Wisconsin – Quad / Graphics, Inc. (“Quad” or the “Company”) today announced the sale of its third-party logistics business QuadExpress (3PL) for $ 40 million to Mullen Group Ltd. (“Mullen Group”), one of the largest logistics service providers in Canada. QuadExpress joins the network of independent companies of the Mullen Group which offers a wide range of service offerings, including partial transport, full transport, warehousing, logistics, transshipment, oversized transport and specialized transport.
The divestiture supports Quad’s established strategy of optimizing its product and service portfolio and investing in those parts of its business that accelerate its position as a marketing solutions partner and create more value for its customers and other stakeholders. . Quad continues to own and operate its in-house transportation and logistics division, Quad Transportation Services, and its trucking division, Duplainville Transport.
The transaction closed on June 30, 2021. Quad will use the sale proceeds to continue to repay debt and improve its debt ratio as part of an ongoing goal to return to its leverage range. preferred long-term target of 2-2.5x.
“We continue to assess our asset collection with a focus on long-term value creation and strategic fit,” said Joel Quadracci, Chairman, President and CEO of Quad. “As a Marketing Solutions Partner, we are committed to delivering the greatest value to brands and marketers, which we do through our unique offering of integrated marketing solutions that reduces complexity, increases efficiency and improves the effectiveness of marketing spending across all media channels. We are happy to find a good buyer for our 3PL business. We know that QuadExpress will benefit from being part of the Mullen Group, which is a similar company dedicated to superior logistics services. We will also benefit from an ongoing relationship with QuadExpress, which will serve as the preferred broker for our internal division dedicated to transportation and logistics. “
Quad acquired QuadExpress (formerly QWExpress) in July 2010 as part of the Worldcolor acquisition. Over the next several years, Quad made significant strategic investments in the business, including creating a proprietary Transportation Management System (TMS) called SilverExpress that streamlines its customers’ ability to request quotes, generate orders, track shipments, generate reports, etc.
The Investment Banking group of Mesirow Financial acted as Quad’s exclusive financial advisor on this transaction, and Reinhart Boerner Van Deuren SC acted as Quad’s legal advisor.