Transcontinental Inc. -- Growth on the Horizon
The CC3 acquisition was a product of carefully scrutinizing the pool of available businesses that meshed with Transcontinental's objectives. In the end, the company stood out based upon its solid management team, a diversified customer base and a three-year growth record that made CC3 too good to pass up.
The acquisitions came on the heels of a 2003 campaign that produced predictable results, with 7 percent growth in revenues over 2002. Part of getting through a challenging year, Desjardins notes, is not getting caught by surprise.
"When we're having a good year, we say, 'Why don't we prepare for the tougher years?' " he states. "We are in three sectors: information product printing, marketing product printing and media business. What we did, before 2003, was restructure the business into those three sectors. Each sector fits for offering products and services made by each individual customer type, so with the print and the service of marketing products—all groups under the sector—we're positioning the combined offering to resolve customer problems and meet their needs.
"With our acquisition of CC3, we are a company that has printing and fulfillment and database services. We are selling information product printing to customers of our publishers. Every customer in that sector is a publisher. So the knowledge that we have on products/services for our customers is shared by everyone in our sector. When you take the three different sectors, we're connecting them where it makes sense. There are some core competencies that fits those three sectors; that's what makes this one organization the most sense to be together."
On the equipment end, Marcoux notes that Transcontinental was the first company in Canada to develop a network of KBA Karat digital offset presses, acquiring the third and fourth such units in North America. The company is in the process of digitizing all of its operations, investing in premedia, taking the digital route in direct marketing work and developing a single platform for all of its businesses.