MONTREAL—More details have emerged in the Quad/Graphics purchase of Worldcolor announced early yesterday morning. The deal, for example, was sparked last August at a lunch meeting between Worldcolor CEO Mark Angelson and Quad/Graphics president Joel Quadracci, according to a conference call the companies held yesterday.

The deal that followed is estimated to be worth $1.4 billion by the Wall Street Journal, but since the deal is based on a share exchange the exact price won’t be known until the deal closes in the summer, Quad goes public, and a share price is established.

Worldcolor common shareholders will receive common shares for approximately 40% equity of the combined company and Quad/Graphics shareholders will have 60% equity ownership, but the Quadracci family will continue to control the company through Class B multiple voting shares.

Quad/Graphics claims current annual revenues of US$1.88 billion—to Worldcolor’s US$3.26 billion—a work force of 11,000 and 11 printing plants in the U.S., two in Poland and two in Latin American. Through the deal, it will gain 35 Worldcolor printing plants in the U.S., Canada and Latin America. It will also gain a wider hemispheric footprint with a new presence in Canada and greater presence Latin America, a book business and a directory business, neither of which it currently claims in its offerings. Quad currently generates 79% of its revenue from magazine, catalogue and retail printing. The new corporate entity is projected to have annual revenues of roughly US$5.1 billion

No information has been given as to how employees might be affected in the deal, nor if any plant closures will result, but the deal is expected to generate US$225 million in net annual cost synergies in 24 months.