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Quebecor Sells Check, Credit Card Divisions

November 1998
MONTREAL—Quebecor Printing plans to divest itself of its check and credit card businesses to Toronto-based MDC Communications. The deal, valued at approximately C$70 million, includes the sale of Quebecor Printing's Custom Cheques of Canada division, its U.S. check division, Custom Direct and BA Custom Cards.

The transaction is subject to compliance with regulatory requirements. MDC will pay Quebecor Printing C$55 million in cash and the balance in MDC shares.

Charles Cavell, president and CEO of Quebecor Printing, notes, "The sale of our check and card divisions will allow us to keep a more concentrated, strategic focus on our core printing businesses and on how we serve our customers around the world.

"MDC gains first-class check and card facilities that strengthen their market position and production efficiency throughout North America," Cavell adds.

Quebecor Printing's checks and credit card businesses make up less than 1 percent of its annual revenue, while approximately 55 percent of MDC Communications' annual sales are in checks and credit cards. Funds generated by these divestitures will be used to pay down debt.

The sale of Quebecor Printing's check and credit card businesses follows the recent divestiture of the company's Barclay retail calendar business to Polk Canada, the expansion of the company's European activities to northern and eastern Europe through the recent acquisition of Scandinavia's largest printer, Tryckinvest i Norden AB (TINA), and the establishment of a centralized worldwide procurement service to maximize global purchasing efficiencies.
 

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