Logistics Unit Is Expanded

CHICAGO–R.R. Donnelley has acquired Momentum Logistics, Inc. (MLI), a Florida-based provider of package distribution services in the Southeast, for approximately $17 million. MLI's revenues were about $60 million in 2002.

"This investment strengthens our logistics capabilities and supports R.R. Donnelley's strategy to expand high-return businesses," says William L. Davis, Donnelley president, chairman, and chief executive.

MLI operates sorting facilities and a dedicated fleet of vehicles to provide business-to-business and business-to-consumer package distribution services. For last-mile delivery to consumers' homes, it uses the U.S. Postal Service (USPS), delivering matter to more than 1,000 local post offices each day. The acquisition, say Donnelley officials, gives the printing company's logistics unit direct access into hundreds of local entry points in the USPS network in the Southeast.

"R.R. Donnelley Logistics is positioned well for profitable growth in 2003," adds John Campanelli, president of the business unit. "This acquisition and our 'SuperCenter' opening later this year in York, Pa. together enhance our capabilities and improve the service offering we'll deliver to print and package customers."

Donnelley offers premedia, digital photography, content management, printing, Internet consulting, and logistics services. The company posts annual sales of $5.3 billion.