Quad, Transcontinental Report Closing Sale/Acquisition of Canadian Plants
SUSSEX, WI/MONTREAL—March 1, 2012—Quad/Graphics Inc. announced that it has completed the previously announced sale of its Canadian operations to Transcontinental Inc.
Quad entered into a definitive agreement with Transcontinental on July 12, 2011, to essentially exchange its Canadian assets (with the exception of its Vancouver, BC, facility, which was not part of the transaction) for Transcontinental’s Mexican assets. Quad/Graphics completed the acquisition of the Mexican assets on Sept. 8, 2011, and since then has been proceeding with its integration plans, which are advancing as originally anticipated.
“The acquisition has been well received by our customer base in Mexico and we are confident that we will see market growth and additional opportunities to further expand our presence there,” said Joel Quadracci, chairman, president and CEO of Quad/Graphics. “As previously announced, we expect this acquisition to provide solid synergy opportunities and position us to achieve our platform, earnings and market-leadership objectives.”
“The important acquisition of the Canadian assets of Quad/Graphics is a milestone in our development as it strengthens our position as the leading printer in the country and allows us to leverage the major investments we have made to our printing platform over the last several years,” said François Olivier, Transcontinental president and CEO. “It will add about $230 million to our revenues and should generate at least $40 million in net incremental EBITDA over the coming 12 to 24 months. It is also good news for the health of the print industry in Canada and confirms the important role of Canadian companies, such as Transcontinental Inc., in the North American printing industry.”
“This important acquisition will allow us to maintain a solid print business going forward, given the competitive and industry dynamics, as it will allow us to continue to improve our manufacturing efficiency and capacity utilization rate by using our most productive assets,” added Brian Reid, President of TC Transcontinental Printing.
Quad/Graphics (NYSE: QUAD) is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts/circulars, direct mail, books, directories, and commercial and specialty products, including in-store signage. Headquartered in Sussex, Wis. (just west of Milwaukee), the Company has approximately 22,500 full-time equivalent employees working from more than 50 print-production facilities as well as other support locations throughout North America, Latin America and Europe.
Transcontinental Inc. (TSX: TCL.A, TCL.B, TCL.PR.D), known by the brands TC Transcontinental, TC Media and TC Transcontinental Printing, has approximately 11,000 employees in Canada and the United States, and reported revenues of C$2.0 billion in 2011.
Sources: Quad & Transcontinental.