LKSD - Quad/Graphics: LSC Deal Risky At First Worthwhile In The Long Run?
Quad/Graphics (QUAD) has reached a deal to acquire another "troubled" marketing solutions provider, LSC Communications (LKSD), in a deal which values the latter at $1.4 billion. The integration risks of the deal and increased (relative) leverage makes investors cautious, as two challenged players are essentially combining their operations.
While earnings, let alone free cash flow multiples, are very low, leverage is high and challenges are great. Hence, I want to see some stabilisation before buying the "cheap" argument.
About The Deal
Quad has reached an all-stock deal to acquire LSC in a share