RTTNews | Sep 15, 2020 08:24AM EDT

08:24 Tuesday, September 15, 2020 (RTTNews.com) - R.R. Donnelley & Sons Co. (RRD) announced Tuesday that it has signed a definitive agreement to sell its DLS Worldwide Logistics business to TFI International for $225 million in cash, subject to a customary working capital adjustment.

The agreement stipulates 10 percent of the purchase price will be held in escrow while the remainder will be paid at closing. The transaction does not include RRD's International Mail and Parcel Logistics business and is expected to close within the next 60 days pending regulatory approvals and other customary closing conditions.

The sale of the DLS Worldwide business will help RRD to further optimize its business portfolio, reduce debt and improve liquidity, all while positioning itself as provider of marketing and business communications.

DLS Worldwide is a non-asset based platform providing logistics services through a third-party network of internal sales personnel, commissioned sales agents and approximately 140 agent-stations.

RRD intends to use a portion of the proceeds from the transaction to reduce its borrowings under its credit facility and the remainder will be held temporarily as cash on hand until it decides to further reduce outstanding borrowings on its credit facility and/or repurchase additional near term debt securities.

RRD previously sold its Print Logistics business in July of 2018 and its Courier Logistics business in March of 2020, in addition to its UK-based Global Document Solutions business in October of 2019.

Read the original article on RTTNews ( https://www.rttnews.com/3128684/rrd-to-sell-dls-worldwide-logistics-business-to-tfi-international-for-225-mln-cash-quick-facts.aspx)

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