MONTREAL, Sept. 8, 2011 /CNW Telbec/ - Transcontinental Inc. (TSX: TCL.A
TCL.B TCL.PR.D) announced today that it has closed the sale of its
Mexican operations to Quad/Graphics, after receiving approval by the
Mexican Federal Competition Commission. As a reminder, its Mexican
operations employed 900 people in three facilities and were forecasted
to generate about C$67 million in revenues in fiscal 2011.
François Olivier, President and Chief Executive Officer of
Transcontinental wanted to highlight that this transaction was
beneficial for Transcontinental. "I am pleased with this first
completed milestone. The divestiture of our Mexican assets to
Quad/Graphics is in line with our strategy to further strengthen our
printing assets in Canada and continue to improve our profitability
while helping our customers to better reach their target consumers."
"Over the past thirteen years, we have built a solid business in Mexico,
said Brian Reid, President of the Printing sector of Transcontinental.
The combination of these assets with those of Quad/Graphics will take
this growth a step further. It will be beneficial for employees,
customers and the industry. I want to thank all of the employees of our
Mexican operations for their support and commitment and wish them well
moving forward," added Brian Reid.
In addition, in connection with this transaction, over the next four to
six weeks, Transcontinental will gradually transfer its one and two
color book printing business, destined for U.S. export, to
Recall that last July 13 Transcontinental also announced that it had
agreed to acquire all the shares of Quad Graphics Canada Inc. including
seven facilities of Quad Graphics Canada (3 in Ontario, 2 in Quebec, 1
in Alberta and 1 in Nova Scotia), including six printing plants and one
premedia facility. This transaction is currently being reviewed by the
Competition Bureau of Canada.
Transcontinental creates marketing products and services that allow
businesses to attract, reach and retain their target customers. The
Corporation is the largest printer in Canada and the fourth-largest in
North America. As the leading publisher of consumer magazines and
French-language educational resources, and of community newspapers in
Quebec and the Atlantic provinces, it is also one of Canada's top media
groups. Transcontinental is also the leading door-to-door distributor
of advertising material in Canada through its celebrated Publisac
network in Quebec and Targeo in the rest of Canada. Thanks to a wide
digital network of more than 1,000 websites, the Corporation reaches
over 11.3 million unique visitors per month in Canada. Transcontinental
also offers interactive marketing products and services that use new
communication platforms supported by marketing strategy and planning
services, database analytics, premedia, e-flyers, email marketing,
custom communications and mobile solutions.
Transcontinental (TSX: TCL.A, TCL.B, TCL.PR.D) has 10,000 employees in
Canada and in the United States, and reported revenues of C$2.1 billion
in 2010. For more information about the Corporation, please visit www.transcontinental.com.
This press release contains certain forward-looking statements
concerning the future performance of the Corporation. Such statements,
based on the current expectations of management, inherently involve
numerous risks and uncertainties, known and unknown. We caution that
all forward-looking information is inherently uncertain and actual
results may differ materially from the assumptions, estimates or
expectations reflected or contained in the forward-looking information,
and that actual future performance will be affected by a number of
factors, many of which are beyond the Corporation's control, including,
but not limited to, the economic situation, structural changes in its
industries, exchange rate, availability of capital, energy costs,
increased competition, as well as the Corporation's capacity to engage
in strategic transactions and integrate acquisitions into its
activities. The risks, uncertainties and other factors that could
influence actual results are described in the Management's Discussion and Analysis and Annual Information Form.
The forward-looking information in this release is based on current
expectations and information available as at September 8, 2011. The
Corporation's management disclaims any intention or obligation to
update or revise any forward-looking statements unless otherwise
required by the Securities Authorities.
SOURCE TRANSCONTINENTAL INC.
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