RR Donnelley and Moore Wallace announced they are merging to form the new RR Donnelley, one of the largest, full-service printing companies in the country.

The companies said the merger will combine RR Donnelley’s strengths in book, catalog and magazine printing with Moore Wallace’s forte in outsourced customer and financial statement printing, personalized forms and labels. RR Donnelley currently prints major magazines such as TV Guide and Time, whereas Moore Wallace focuses on outsourcing customer statements, as well as personalized forms and labels for major financial institutions and other large companies.

In a conference call announcing the merger, Mark Angelson, current CEO of Moore Wallace and now CEO of the new RR Donnelley, said the new company will be twice the size of its nearest North American competitor but is poised for significant cost savings.

“We expect to realize $100 million in cost savings within the first 12 to 24 months or the merger,” Angelson said. “This will be derived from eliminating combined overhead for the two companies, as well as procurement savings and asset rationalization.”

Angelson was less forthcoming on predicted revenue details, but did say the combined company is expected to bring in $8 billion in revenues and post a $6 billion market value. Plus, the merger will capitalize on the synergies between the two firms to upsell and cross-sell to their major customers. “Cross-selling will be a huge part of this,” Angelson said. “We see nothing but opportunity here for the combined companies.”

The merger is set to close within 120 days of the Nov. 10 announcement, or sometime within the first quarter of next year. The boards of directors of both companies have unanimously approved the agreement. RR Donnelley’s current CEO and President, William Davis, had announced his intention to retire in July, once a successor was named. He is expected to retire once the merger is completed, leaving Angelson at the helm of the combined company.

Under the terms of the transaction, Moore Wallace shareholders will receive RR Donnelley shares based on a fixed exchange ratio of 0.63 of an RR Donnelley share for each Moore Wallace share. This equals $17.66 in value per Moore Wallace share, or approximately $2.8 billion in total equity value, a premium of 16%, based on the closing stock prices of both companies on the New York Stock Exchange on Friday.

For more information, visit the RR Donnelley site or the Moore Wallace site.