Transcontinental Closing Two Former Quad Plants
MONTREAL—Shortly after the deal closed, TC Transcontinental announced that two of the six Canadian facilities it recently acquired from Quad/Graphics would be closed and another folded into an existing plant. The measure is part of the company's reorganization and rationalization of assets, a move that will see about 500 employees impacted.
The two facilities to be shuttered are in Montreal and Dartmouth, Nova Scotia. The former will shut down by the end of June, the latter will close this month.
The four remaining plants will be integrated into the Transcontinental network. Also, the Quad/Graphics Toronto Que-Net Media premedia center will be integrated into Transcontinental's premedia center and move to Mississauga, Ontario.
The multi-phase integration is aimed at improving Transcontinental's capacity utilization ratio and enable it to make full use of the $700 million invested in its print network over the past several years. Transcontinental expects the acquisition of the Canadian assets of Quad/Graphics to bring in C$230 million in new business and to generate at least C$40 million in net incremental EBITDA over the next 12 to 24 months.
“The process of integrating the Canadian operations of Quad/Graphics was given a great deal of study and is a good fit with market requirements and Transcontinental’s long-term vision,” said François Olivier, president and CEO of TC Transcontinental. “We have difficult choices to make, but are convinced that this is the best strategy for strengthening Transcontinental’s base and protecting jobs in order to remain strong in a Canadian industry that is experiencing tough competition.”