Quad Sells Parcel Direct to FedEx

SUSSEX, WI—Quad/Graphics has reached an agreement with FedEx to sell its Parcel Direct division to the overnight delivery specialist for $120 million in cash. The deal is pending regulatory approval and legal conditions being met.

Parcel Direct has an employee base of 450 in 12 distribution centers nationwide. It generated $250 million in sales for 2003.

"In six years, we have grown Parcel Direct from a tiny upstart into a leading parcel expeditor and now we are pleased that a premier company like FedEx will build on our record growth," notes Thomas Quadracci, Quad/Graphics president and CEO. "Our companies share similar business values, especially our commitment to customer and employee care. We have full confidence in FedEx as a growth-oriented business and top-level employer."

Quad/Graphics claims it is selling the unit for the long-term best interest of Parcel Direct's employees and customers. The sale has no effect on Quad's commercial printing operations or its print distribution services, provided via its Quad/Transportation Services division.