Quad/Graphics Poised to Double in the Near-Term

Quad has a blue chip customer base including many of the top magazines and retailers like SI, Time, Conde Nast, Williams Sonoma, Victoria’s Secret. It acquired World Color Press in July 2010. Management of both companies felt that pre-tax synergies would be at least $225 million. The costs to achieve the synergies would be $195-$240 million and take about 24 months.

Quad is about halfway through this process. As of Q2-11 it has achieved about $120M of the synergies. It has closed 9 of the 10 plants and cut employees from 5,000 to 3,400.

Over the next 12 months, it will realize