Quebecor World Battles Forward
MONTREAL—With some clients bailing out and its parent company offering more adversity than support, a leaner and meaner Quebecor World continues to battle forward by securing new deals and extensions on existing contracts.
The financially troubled printer does have a tough road ahead. Quebecor World has opted to close its Magog, Quebec, facility, which produced magazines and retail inserts for the U.S. and Canadian markets. About 300 full-time jobs will be lost, including 200 positions already on temporary layoff, which will be made permanent.
On the plus side, it received final approval for US$1 billion debtor-in-possession (DIP) financing. The financing is comprised of a term loan of $600 million and a revolving loan facility of $400 million.
In other company news, Quebecor World has been awarded a new contract with The McGraw-Hill Cos. extending into 2014. The new agreement is valued at approximately US$285 million over its term and covers a wide range of educational textbooks, ancillary products, professional learning tools and catalogs.
Quebecor World and Wenner Media have come to terms on a new, multi-year agreement for the printing of three Wenner titles: Rolling Stone, US Weekly and Men’s Journal. The deal extends the relationship between the companies and sees Quebecor World increase its volume with Wenner Media by about 10 percent.
The printer’s Magazine Group signed renewal and new business agreements that will add 33 new titles to the company’s Targeted Publications platform.
Included is a multi-year agreement to print 16 magazine titles for Meister Media Worldwide, a leading agricultural publisher based in Cleveland.
The printer also secured a new multi-year pact to print 100 percent of a nine-title portfolio of magazines published by Stamats Business Media of Cedar Rapids, IA.
Other pacts include a multi-year renewal agreement with Affinity Group to print all of the publisher’s 30 magazine titles. Quebecor World also reached a multi-year deal to print two weekly magazines for Amos Publishing of Sidney, OH—Coin World and Linn’s Stamp News.