Highlights: • Generated third quarter net sales of $1.2 billion and Adjusted EBITDA of $117 million. • Achieved Free Cash Flow of $68 million year-to-date, representing a $106 million increase over prior year. • Lowers full-year 2015 guidance for net sales to a range of $4.6 billion to $4.7 billion; Adjusted EBITDA to a range of $430 million to $450 million; and Free Cash Flow to a range of $165 million to $180 million. • Announces $100 million cost reduction program. • Completed the strategic acquisition of Specialty Finishing, a full-service paperboard folding carton manufacturer, to support transformative growth opportunities in high-end packaging. • Declared a quarterly dividend of $0.30 per share.
LSC Communications (NYSE: LKSD) announced today that it has acquired The Clark Group. Clark is a leading third-party logistics provider of distribution, consolidation, transportation management and international freight forwarding services, with a network of nine strategically located distribution centers in the US.
“Continuing to expand LSC’s logistics service offering in ways that add value to our clients’ businesses has been a sharp focus for us,” said Thomas J. Quinlan III, Chairman and CEO of LSC. “The Clark Group brings a range of supply chain services to LSC that position us for growth, including the ability to better provide a full-service offering for magazine clients with newsstand distribution as well as reverse logistics solutions for our book publisher clients.”
Gores acquired The Clark Group out of the firm’s lower middle market fund, Gores Small Capitalization Partners, and then followed with a number of add-on acquisitions to establish a world class logistics provider with a single source supply chain solution. Clark has experienced significant success in customized reverse logistics solutions for the book industry over the past five years, resulting in revenue growth and significant cost savings to publishers, distributors and retailers.
“We believe that the Clark management team has executed a valued transformation over the years, and has landed with the right company in LSC.” added Chris Crowell, Managing Director of The Gores Group. “We wish the Clark team continued success in their partnership with LSC.”
LSC has been building the company’s distribution capabilities for print and non-print materials. This acquisition marks LSC Communications’ second acquisition in the logistics space this year, following the acquisition of Fairrington Transportation announced on July 31, 2017.