Transcontinental Signs Multi-Year Agreement to Print The Gazette; Completes Acquisition of Capri Packaging
MONTREAL—May 6, 2014—TC Transcontinental Printing has announced that it has signed a multi-year agreement with Postmedia Network to print The Gazette, which is published Monday to Saturday, primarily for the Montreal market. The contract with Postmedia Network is slated to take effect during the month of August 2014. The newspaper will be printed at Transcontinental Transmag's facility in Montreal. No additional investments will be required to accommodate this new business given TC Transcontinental Printing's highly efficient and flexible hybrid platform and skilled workforce. This agreement will enable TC Transcontinental Printing to further optimize its capacity within the Transcontinental Transmag facility.
"This agreement builds on our recent announcements to print the Vancouver Sun and the Calgary Herald," said Brian Reid, president of TC Transcontinental Printing. "Given the current pace of change in the newspaper industry, this additional agreement demonstrates the relevance of our printing platform and our ability to help publishers across Canada become more efficient. We continue to benefit from our outsourcing offering as publishers express interest in our solution. We are actively pursuing additional outsourcing opportunities in the Canadian market."
In other company news, Transcontinental Inc. has completed the transaction for the acquisition of the assets of Capri Packaging, a producer of flexible packaging, operating two facilities located in Clinton, MO. The acquisition will add about US$72 million to TC Transcontinental's revenues. As part of the transaction, the seller, Schreiber Foods, has signed a 10-year agreement to secure Capri Packaging as a strategic supplier of flexible packaging, which represents about 75 percent of Capri's total revenues.
"The acquisition of Capri Packaging is an important milestone in our development and is an integral part of our strategy to ensure TC Transcontinental's profitable growth through prudent diversification," noted François Olivier, president and CEO, of Transcontinental Inc. "It represents a strategic move for the corporation into a new promising area, flexible packaging, where we can significantly leverage our manufacturing competencies. We are enthusiastic about the future prospects that lie ahead for TC Transcontinental. We warmly welcome all Capri Packaging employees into our organization."
Olivier also added: "In order to efficiently develop, run and grow our manufacturing operations, we have adapted our organizational structure. Brian Reid is appointed president of the sector that now comprises two divisions: TC Transcontinental Printing and TC Transcontinental Packaging. Drawing on his extensive manufacturing experience, Brian will also oversee the development of our new packaging operations as the divisional president of TC Transcontinental Packaging, while continuing to oversee the strategic orientations of the Printing division. To support him in his new role, Jacques Grégoire is appointed divisional president of TC Transcontinental Printing. Grégoire is a seasoned manager with over 27 years of leadership experience in key executive roles within TC Transcontinental Printing. Until recently, Grégoire was senior vice president of the Magazine, Book and Catalog Group. I wish them both much success in their new roles."
About TC Transcontinental
The largest printer and leading provider of media and marketing activation solutions in Canada, TC Transcontinental creates products and services that allow businesses to attract, reach and retain their target customers. The corporation specializes in print and digital media, the production of magazines, newspapers, books and custom content, mass and personalized marketing, interactive and mobile applications, and door-to-door distribution.
Transcontinental Inc., including TC Transcontinental, TC Media and TC Transcontinental Printing, has over 9,000 employees in Canada and the United States, and revenues of C$2.1 billion in 2013.