RR Donnelley

The Printing Impressions 400

Just when you thought 2005 was going to be a relative dud in the merger and acquisition realm, along came fall. And that's when the action got hot and heavy. Four monster transactions sent 2005 out with a bang. OK, so we can't count December—after all, we're not clairvoyant. But the deals vibrated through the industry, a couple of which involved the two largest printers in North America. Hey, the late 1990s don't appear to be returning any time soon, but that doesn't mean we won't experience an M&A renaissance. * RR Donnelley broke its prolonged silence by annexing Spencer Press of Wells, ME.

By Erik Cagle Senior Editor It is virtually impossible to ignore the impact Robert (Bob) Burton had on the printing industry in 2005. Given his relentless pursuit of two companies this past year, it was almost a given that Burton would enter 2006 at the helm of some printing business. But let's not get ahead of ourselves. In the final analysis, 2005 will be viewed as a year marked by triumph, tragedy and transactions, not to mention some unexpected twists and turns. Which fits us to a T. While the news wasn't always positive, a silver lining—a moral or a lesson could usually

If you have ever wanted to take a peek into the pockets of some of the top executives in the printing industry, here is your chance. Printing Impressions' 16th annual executive compensation report highlights the industry's top money earners at publicly held printing companies. Mark Angelson, CEO of Chicago-based RR Donnelley, again ranks first in annual salary for this list, earning more than $4 million. This is the third consecutive year that a RR Donnelley exec has topped our list. The rankings indicate previous fiscal year salaries, most recent fiscal year wages and the percentage change in compensation from the two fiscal years that

2005 PI 400 Ranking: Industry in Transition Welcome to our 22nd annual "Printing Impressions 400 & Who's Who in Printing" issue. Aside from ranking the 400 largest printers in the U.S. and Canada based on sales, this special year-end edition also forecasts major print segments for the coming year. Providing an industry snapshot of which companies are soaring, which ones are just treading water and those that are sinking, the PI 400 is increasingly conspicuous by the venerable establishments that no longer appear on our list—usually the result of having been acquired by another company. And some privately held shops won't divulge their sales. This

BY MARK SMITH Technology Editor Marketers, it would seem, are every bit as intrepid as mail carriers. It will take more than a modest rate increase to keep the mail from going through, as the prevailing outlook for direct mail in 2006 calls for continued growth. Success will be database driven, with messaging getting ever more personal. By the time the ball drops in New York's Times Square, more than $161 billion will have been spent this year on direct marketing in the United States, projects an independent study commissioned by The Direct Marketing Association (DMA). According to its "U.S. Direct Marketing Today: Economic

BY MARK SMITH Technology Editor When it comes to physical format and production processes, catalogs and magazines have always been more alike than different. The introduction of the "magalog" concept extended the overlap to content and intent, albeit in a limited fashion. Now, as the industry looks forward to 2006, there are a lot of common threads in the business issues facing these two market sectors. Postal rate increases obviously are a challenge for much of the printing industry, but these two sectors bear the brunt, along with direct mail. Paper issues—including pricing, availability and sustainable manufacturing—also cut equally across both sectors. Their customers

By Erik Cagle Senior Editor The book printing industry resembles a high-level chess match. All of the successful players are thinking three and four moves ahead, with increasing market share representing "checkmate." RR Donnelley (RRD) and Quebecor World are just two of the book heavyweights that have established offshore printing relationships, or have obtained foreign facilities outright, in order to maintain those publishing clients who gush at the opportunity to produce low-priority goods at drastically discounted prices. Although it sometimes seems China is the poster child for international outsourcing, Mexico and Latin America are the alternatives of choice for Quebecor World, promising a quicker

CHICAGO—RR Donnelley has signed a definitive agreement to acquire catalog and direct mail specialist Spencer Press of Wells, ME. The deal is expected to close sometime during the fourth quarter. Spencer Press manufactures, among other things, catalogs, press-pasted booklets, free-standing inserts and self-mailers. Founded in 1940, Spencer Press has more than 400,000 square feet of operating space. It ranked 66th on the Printing Impressions 400 ranking in 2004 with annual sales of $83.5 million. Obtaining Spencer Press helps complement Donnelley's existing catalog and retail services platform. "Spencer Press is an ideal fit with RR Donnelley," notes Mark Angelson, CEO of Donnelley. "Adding Spencer Press'

Daly, Frontenac Seek Specialties CHICAGO—Private equity investment firm Frontenac and Ronald Daly, former president of RR Donnelley Print Solutions, have created a business partnership to acquire and grow specialty printers and other print solutions companies. Daly worked with Donnelley for 38 years. EPI Cos., Display Printers Merge MARIETTA, GA—The EPI Companies, based here, has acquired Display Printers, a manufacturer of printed merchandising displays. EPI specializes in marketing support for corporate clients, including creative services, traditional and digital print, logistics, premiums and online solutions. Unions Pressure Schawk CHICAGO—With its Union Network International (UNI) Congress taking place here, about 100 labor delegates, union leaders and activists decided to pay an