RR Donnelley announced yesterday that it was acquiring Pro Line Printing, Inc. for $122m.  The companies entered into a definitive purchase agreement, which is subject to a number of closing conditions.

Why Buy Pro-line?

This is another very traditional acquisition: RRD is looking to expand geographically in a specific vertical - in this case newspaper inserts.  Pro Line is a multi-facility printing company out of Texas.  This will complement RRD's offset plant in Indiana- gaining a western distribution point as well as a new geographic customer base.

What is the Parralel? 

We see these types of transactions consistently in lower-middle market M&A.  In printing and graphics in particular- an industry with significant fragmentation at the lower end- geographic consolidation continues to make sense.