Printing and publishing giant Transcontinental Inc. and U.S. rival Quad/Graphics Inc. are trading assets in a move to strengthen their respective operations in Canada and Mexico.
Montreal-based Transcontinental and Wisconsin-based Quad/Graphics said Wednesday they have struck an agreement for two separate transactions.
In the first, Transcontinental will acquire Quad/Graphics Canada – six printing facilities and one pre-media plant that employ 1,500 people and are forecast to post $310-million (U.S.) in revenue in fiscal 2011.
In the other deal, Transcontinental will sell its Mexican assets – three facilities employing about 900 people, with $67-million (Canadian) in revenues forecast for this year – to Quad/Graphics.
It will also transfer its black-and-white book printing business, destined for U.S. export, to Quad/Graphics; annual revenues are in the $25-million range.
"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," Transcontinental chief executive François Olivier said in a news release.
Joel Quadracci, president and CEO of Quad/Graphics said the deal will allow his company to expand in the high-growth market of Mexico, where it already has operations.
Last year, Quad/Graphics acquired Montreal-based Worldcolor – formerly Quebecor World – in a deal initially valued at about $1.2-billion (U.S.).