R.R. Donnelley & Sons To Be Acquired By Atlas; Q3 Adj. Profit Rises

(RTTNews) - R.R. Donnelley & Sons Company (RRD) has entered into a merger deal to be acquired by affiliates of Atlas Holdings LLC, in an all-cash transaction with a total enterprise value of approximately $2.1 billion. RRD stockholders will receive $8.52 per share in cash for each share of RRD common stock. The transaction is anticipated to close in the first half of 2022.

Separately, R.R. Donnelley & Sons Company (RRD) announced that its third quarter GAAP and non-GAAP income from operations exceeded prior year, benefitting from higher sales and strong cost management despite supply chain challenges and inflation. The company is withdrawing 2021 outlook as a result of the pending deal.

Third quarter non-GAAP adjusted earnings per share from continuing operations to stockholders increased to $0.57 from $0.32, a year ago. Net income from continuing operations was $28.1 million compared to a loss of $9.1 million, last year. Earnings per share from continuing operations attributable to stockholders was $0.38 compared to a loss per share of $0.13. Net sales were $1.27 billion, up 6.4% from prior year. Organic net sales increased 5.5%.

Shares of R.R. Donnelley & Sons were up 40% in pre-market trade on Wednesday.