Transcontinental buys Quad Graphics Canada
Transcontinental of Montreal has entered into an agreement to indirectly acquire all the shares of Quad Graphics Canada from Quad/Graphics. Transcontinental will acquire seven facilities in Ontario, Quebec, Alberta and Nova Scotia, including six printing plants and one premedia facility. In a separate transaction, Transcontinental has also reached an agreement to sell its Mexican operations to Quad/Graphics as well as to transfer its black and white US-destined book printing business to the company. Both transactions remain subject to regulatory approvals in Canada and Mexico. Both transactions are expected to close in the fall. "The acquisition of the Canadian assets of Quad/Graphics is in line with our strategy to build on our more traditional print assets and is key to maintain a solid business going forward given the competitive and industry dynamics," said François Olivier, president and CEO of Transcontinental. "It will allow us to leverage the over $700 million in investments we have made to our printing platform over the last several years. The print markets in general have suffered from overcapacity and more intense competitive pressures in certain niches in recent years, with the proliferation of digital and web communication platforms, technological advances in new printing presses as well as the entry of US players in the Canadian marketplace. These transactions will permit us to improve our capacity utilization rate and better equip us to face these new challenges."