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Transcontinental Takes Aim at PLM Group

September 2007
MONTREAL—Transcontinental Inc. is bidding to take control of Toronto-based PLM Group. Transcontinental has made a takeover bid of C$3.50 per share for PLM’s 29.5 million outstanding shares, with a total enterprise value, including debt, of $130 million.

Barry Pike, founder, chairman and CEO of PLM, and Pike Holdings—a holding company he controls—have signed a hard lock-up agreement to tender his shares, which account for 51.2 percent of the outstanding shares. On the day the deal was announced, the offer represented a 25 percent premium over PLM’s trading price on the Toronto Stock Exchange from the previous day.

PLM Group posted revenues of C$126 million in 2006. The deal is expected to close in October.

“PLM is regarded highly by businesses, marketing firms and advertising agencies in Canada,” noted Luc Desjardins, president and CEO of Transcontinental, in a release.

“With PLM, we will become a leader in Canada’s direct marketing industry, a fast-growing segment where Transcontinental is already a major player in the United States; PLM will also complement our product and service offering in the Greater Toronto area. PLM brings Transcontinental a dynamic sales force, which will augment cross-selling opportunities.”
 

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