CHICAGO (News release) -- LSC Communications and United Business Mail (UBM) announced today that UBM has acquired LSC's commingle business for $11.25 million in cash. The transaction includes LSC's commingle facility located in Aurora, Illinois, which LSC acquired as part of the acquisition of RRD Print Logistics in July of 2018.
UBM has been a leader in the commingle industry for more than 30 years. Commingling is a process that enables mailers to combine their mail streams to maximize postage discounts offered by the USPS. Bill Wetzel, Chief Executive Officer of United Business Mail, stated, "UBM is honored to build upon the very strong relationships that LSC has created with their clients and this acquisition will further our position as a leading commingle provider to the mailing industry."
Drew Coxhead, Chief Financial Officer of LSC Communications, commented, "With their years of experience and leadership in the commingle industry, UBM is well-positioned to continue to grow the business and manage a seamless transition for both clients and employees. This transaction will enable LSC to continue to focus on our core print and logistics businesses, and the proceeds from this sale will be used to reduce debt."
As part of the agreement, LSC Communications will continue to be the exclusive logistics services provider for all of UBM's mail.