RR Donnelley Sons & Company has announced that it intends to create three independent, publicly traded companies, according to a press release issued by RR Donnelley.
The move will split RR Donnelley into three separate companies with each company focusing on their own business dynamics.
One business will focus on financial communications and data service, another will focus on publishing and retail-centric print services, and the third will focus on customized multichannel communications management, according to the press release.
The move is expected to provide strategic and financial benefit to the company.
"We see a significant opportunity to unlock value by allowing these three businesses to pursue their own strategies and invest according to the unique dynamics of their respective industries," Thomas J. Quinlan III, president and chief executive officer of RR Donnelley, said in the press release.
"Each company will have the strategic focus, management resources, and capital structure to enable it to strengthen its market position and pursue its growth opportunities, enhancing long-term value for stakeholders," he added.
Customized Multichannel Communications Management Company will be RR Donnelley's largest company in terms of revenue.
The company generated approximately $7 billion in revenue in the 12 months through June, according to the press release.
The Publishing and Retail-Centric Print Services Company, and the Financial Communications Services Company generated $3.5 billion and $ 1 billion in revenue, respectively, during the same period.
Bloomberg adds that RR Donnelley's split is the latest among companies in the media industry that have also split into separate entities.
In August 2014, Tribune Publishing Co. split from Tribune Co., which was renamed to Tribune Media Co. Meanwhile, in June 2014, Time Inc. split from Time Warner Inc., and in June 2013, News Corp. and 21 Century Fox split into two separate entities.
RR Donnelley plans to distribute the two new shares of the Financial Communications Services Company, and the Publishing and Retail-Centric Print Services Company in a tax-free transaction to its shareholders, according to the press release.
The transaction is expected to be completed before the end of 2016.
Once the transactions are completed, RR Donnelley's shareholders will expect to own shares in all three companies, according to the press release.
