Deal Enhances IWCO Direct’s StandingMarch 2010
CHANHASSEN, MN—Completing a process that began last summer, IWCO Direct has entered into a definitive purchase agreement to acquire Transcontinental Direct's U.S. operations, a high-volume direct mail organization with a network of facilities throughout the United States. Terms of the deal, which is expected to close soon after receiving regulatory approval, were not revealed.
IWCO Direct will acquire Transcontinental Direct's U.S. operations in Warminster and Hamburg, PA; Downey, CA; and Ft. Worth, TX. Transcontinental's U.S. direct mail group generated revenues of $153 million in 2009 and employs about 1,200 people, according to the company. The acquisition builds IWCO Direct into the sales range of roughly $380 million.
Jim Andersen, IWCO Direct president and CEO, told Printing Impressions that Transcontinental had actually expressed an interest in acquiring IWCO Direct on two different occasions (IWCO Direct was eventually taken over by Citigroup Venture Capital, and then Avista Capital Partners). But the third time around, it was Andersen who broached the subject of acquiring Transcontinental's U.S. direct mail holdings with François Olivier, Transcontinental president and CEO.
"I see a lot of value in the two companies coming together," Andersen says of the deal. "We'll be able to leverage technology and the best practices between the two companies. Plus, we believe we're going to enhance our postal promise on reducing postal costs for our customers, along with enhancing the distribution and reducing cycle time to get mail in-home faster."