R.R. Donnelley Logistics Services, Chicago, a unit of directory and catalog publisher R.R. Donnelley & Sons Co., has purchased CTC Distribution Direct, reportedly the largest U.S. mailer of business-to-home parcels.
Terms of the deal were not disclosed.
The purchase doubles the size of Donnelley Logistics to $800 million in gross sales. The company, which distributes catalogs, magazines, books and direct mail, said the $6 billion business-to-home parcel market is growing at 21% a year.
From its 18 facilities nationwide, CTC services more than 300 clients, including America Online, Chadwick’s of Boston, USA Networks Inc.’s Home Shopping Network, J.C. Whitney and Miles Kimball.
The acquisition was expected to close within the month. Under terms of the agreement, Minneapolis-based CTC’s CEO John Clark and the management team will continue to play a key leadership role in the new organization. Executive offices will remain in Downers Grove, IL, and Minneapolis.
The acquisition comes at a time when the demand for business-to-home parcel delivery is dramatically increasing. In addition to continued catalog growth, Forrester Research predicts e-retailer shipments of 240 million parcels in 1999 will increase to 1.5 billion parcels per year by 2003.
“In an era when companies need to reach their customers ever more quickly and efficiently, we are creating a direct pipeline into the home for our customers,” William Davis, R.R. Donnelley chairman and CEO said in a statement.
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