Quebecor World Spins Off Its Premedia Operations
A strategic alliance will be formed with Informission-Intellia, which will provide Web-enabled e-commerce tools including digital asset management systems, automated publishing systems and e-catalog solutions.
Meanwhile, Quebecor World is handing off its CD-ROM production capabilities. It has reached an agreement to sell the North American operations of Print Northwest, consisting of two software manufacturing and fulfillment facilities located in Fife, WA, and Westborough, MA. These operations are being sold to Vancouver-based Q-Media.
Under the terms of the agreement, Quebecor World will receive a total consideration of US$63 million, comprising cash of US$58 million and US$5 million worth of Q-Media shares. In addition, Q-Media will continue to perform software manufacturing, printing, assembly and fulfillment services for Quebecor World.
"This divestiture is in line with our growth strategy and will enable Quebecor World to better focus on its core business. Currently, the North American operations of Quebecor Integrated Media account for slightly more than 1 percent of our consolidated revenues," Cavell notes. "On the other hand, this transaction will provide Q-Media with a world-class facility, which complements its strategic focus and strengthens its market position in the U.S."