TC Media Acquires Sun Media's Community Papers in Quebec
December 05 2013 - 11:09AM
Marketwired
TC Media Acquires Sun Media's Community Papers in Quebec
MONTREAL, QUEBEC--(Marketwired - Dec 5, 2013) - TC Media, a
division of TC Transcontinental, and Sun Media Corporation, a
subsidiary of Quebecor Media, announce that they have signed a
final agreement under which the 74 Sun Media community papers and
associated web properties in Quebec will be acquired by TC Media
for an amount of $75 million. The agreement has been approved by
the boards of directors of both companies, but is subject to
regulatory approval from, among others, the Competition Bureau.
During the period in which this transaction is being reviewed, the
two companies will remain independent and will continue their
normal operations. Sun Media will thus continue to publish the
community papers covered by the agreement.
"Acquiring Sun Media's 74 community papers in Quebec is in line
with our strategy to strengthen the core assets of TC Media and
develop a local digital media offering for businesses and
communities," said François Olivier, President and CEO of TC
Transcontinental. "This transaction will add approximately $20
million to TC Transcontinental's operating income before
amortization. It will also give us the opportunity to continue
building multiplatform offerings across all of Quebec by drawing on
the talents of our people and on those who work on the Sun Media
community papers in Quebec. We are enthusiastic about welcoming
them soon."
"The digital revolution has completely transformed the local
print media market in recent years. Clients can now place their ads
on a multitude of platforms that did not exist just over a decade
ago," said Robert Dépatie, President and CEO of Quebecor Media,
parent company of Sun Media. "We are delighted that with this
transaction we are ensuring Quebec ownership of these papers for
the future by selling them to another major Quebec company, TC
Media. We wish to thank all the employees who for decades have made
it possible for these local papers to keep their communities
up-to-date on local events," said Dépatie.
Print contract
As part of this transaction, TC Transcontinental has also signed a
parallel agreement with Quebecor Media to print some of its
magazines and direct marketing materials. Thus, on or about
February 1, 2014, TC Transcontinental Printing will start printing
Quebecor Media products.
"Today's announcement by TC Transcontinental and Quebecor Media
is a historic one. On the one hand it shows the relevance of our
state-of-the-art printing platform and our ability to help
publishers and marketers, and on the other it demonstrates our
ability to change in keeping with the new realities of the local
media market," noted Olivier.
About TC Transcontinental
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. (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D),
known by the brands TC Transcontinental, TC Media and TC
Transcontinental Printing, has more than 9,000 employees in Canada
and the United States, and revenues of C$2.1 billion in 2013.
Website www.tc.tc.
Media: Nathalie St-JeanSenior Advisor, Corporate
CommunicationsTC TranscontinentalTelephone : 514
954-3581nathalie.st-jean@tc.tcwww.tc.tcFinancial Community:
Jennifer F. McCaugheySenior Director, Investor Relationsand
External Corporate CommunicationsTC TranscontinentalTelephone : 514
954-2821jennifer.mccaughey@tc.tc / www.tc.tc
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