Moore Wallace will use its previously undrawn $350 million revolver to fund the purchase of GSC Partners ' Payment Processing Solutions (PPS) for $92.5 million. Moore Wallace also recently announced a $2.8 billion all-stock merger with RR Donnelley in which Donnelley will assume $900 million of Moore Wallace's debt (LMW, 11/17). There is no link between the timing of the two acquisitions, according to Michael Kraus , senior v.p. of mergers and acquisitions at Moore Wallace.
The $350 million revolver is led by Citibank . Moore Wallace also has $498.75 million outstanding on its "B" loan. The company will likely try to refinance its bank facility upon completion of the RR Donnelley merger, Kraus previously told LMW . Alfred Eckert III , chairman of the Moore Wallace board of directors, is also the ceo of GSC Partners. Calls to GSC Partners were not returned.
Moore Wallace has been looking at PPS for a long time and the acquisition is consistent with the company's strategy, Kraus said. PPS is a processor of printed customer statements, primarily serving the mortgage lender industry. Moore Wallace, meanwhile, is a single-source provider of print management out outsourced communications. The transaction is in line with Moore Wallace's previously announced strategy of making relatively small acquisitions that expand both its product offering and client base in its higher growth, higher margin outsourcing business.