Left side advert image
Right side advert image
Super banner advert image
Subscribe to Print Monthly's RSS feed

Enter your email address here to sign up for our weekly newsletter

Industry

Groups protest merger of biggest magazine printers

The Open Markets Institute, a group that works against extreme concentrations of private power, has penned a letter to the U.S Department of Justice, protesting the merger of the two biggest magazine printing companies in the United States.

Article picture

Groups have warned against the monopolisation of book and magazine printing in the U.S

The letter argues that the merger of Quad Graphics and LSC Communications would give the combined companies 15 times the magazine printing revenue of its nearest competitor in the market.

The merger was first announced in October 2018, when it was reported that Quad would be acquiring LSC in a transaction valued at $1.4bn (£1.08bn). At the time, industry experts voiced concern over the monopolisation of the magazine printing industry in the U.S.

Released in a statement when the deal was first announced, Quad’s chief executive officer Joel Quadracci, comments: “This is a defining moment in Quad’s 47-year journey. We have grown from a printer with a single facility to a global marketing solutions provider.

"Together with LSC Communications, we will create a compelling combination of talent, expertise and client technology to further fuel our Quad 3.0 marketing solutions transformation.”

… the Antitrust Division should block this merger, and further, require Quad and LSC to sell off their magazine distribution subdivisions

The letter from the Open Markets Institute is also signed by two author groups, Pen America and The Authors Guild, which all argue to the Antitrust Division of the Department of Justice that the merger would “place power over printing in the control of only one corporation.”

The letter reads: “Given that Quad and LSC are proposing a merger to monopoly in two markets, the Antitrust Division should block this merger, and further, require Quad and LSC to sell off their magazine distribution subdivisions.”

The letter details that publishers in the country now have limited options for printing. “The result, as publishers, industry insiders, and printing executives have all confirmed to Open Markets, is that a long-run magazine or book in the United States today really has only two options to print their magazine: Quad or LSC.”

The open letter also details that no major magazine or book publishers were willing to talk on the record about the merger, for fear of damaging ongoing relationships with the “only two corporations they can work with.”

… a long-run magazine or book in the United States today really has only two options to print their magazine: Quad or LSC

As well as being the biggest magazine printers in the U.S, Quad and LSC are also the only two major distributors of print magazines meaning that even if a book or magazine is printed by another company, that company can still only choose between the two companies to distribute the print products.

The Walstead Group acquired the European printing business of LSC, based in Poland, in July 2018 and it was rebranded as Walstead CE.

LSC Communications is based in Chicago, Illinois and employs 24,000 staff, whilst Quad Graphics is based in Wisconsin and employs 21,100 people. The deal is expected to be completed mid-2019.

If you have a news story, email summer@linkpublishing.co.uk or follow us on Twitter to have your say.


Print printer-friendly version Printable version Send to a friend Contact us

No comments found!  

Sign in:

Email 

or create your very own Print Monthly account  to join in with the conversation.