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Montreal, February 10, 2010
– Transcontinental has signed an agreement to sell its
U.S. high-volume direct mail operations to IWCO Direct, a
U.S.-company headquartered in Minnesota. The sale includes
substantially all of the assets of Transcontinental’s
U.S. direct mail group in Warminster and Hamburg in Pennsylvania,
and in Fort Worth, Texas and Downey, California. The transaction
is subject to regulatory approval and is expected to close
by the end of Transcontinental’s second quarter.
“Transcontinental has decided to focus on its other
market segments,” explained François Olivier,
President and Chief Executive Officer of Transcontinental.
“The sale of our U.S. high-volume direct mail operations
will benefit customers, employees and the industry.”
“We are pleased to combine the strengths of the Transcontinental
Direct’s U.S. operations with IWCO Direct. This provides
a robust national total package footprint for our customers
seeking innovative and cost-effective programs for customer
acquisition, loyalty and engagement programs anchored by powerful
strategy development,” said Jim Andersen, IWCO Direct
President and CEO. “The IWCO Direct team is looking
forward to working with our new colleagues from Transcontinental
to create exceptional direct marketing programs for our customers.”
While awaiting regulatory approvals, the two companies will
continue to operate independently until the sale closes. Transcontinental’s
high-volume direct mail group in the United States generated
revenues of US$153 million in 2009 and employs about 1,200
people. CIBC is acting as exclusive financial advisor to Transcontinental
on this transaction.
About IWCO Direct
IWCO Direct (www.iwco.com),
one of the nation's largest providers of direct marketing
solutions, has served the needs of North American companies
for more than 40 years. IWCO Direct helps its customers acquire,
retain, and engage customers and members through highly personalized
paper-based and digital marketing programs. The company provides
direct marketing like no one else by seamlessly supplying
all design, production, mailing and management services in
an integrated “total package” supply chain solution.
IWCO Direct pioneered commingling and continues to provide
its customers with dramatic postage savings and faster time
to market through its proprietary IWCO P.O.S.T. (Postal Optimization
Strategy and Technologies) and RideShare™ commingling
and logistics management programs, as well as its automated
marketing program platform and proprietary data services.
About Transcontinental
Transcontinental provides printing, publishing and
marketing services that deliver exceptional value to its clients
and provide a unique, integrated platform for them to reach
and retain their target audiences. Transcontinental is the
largest printer in Canada and in Mexico, and sixth-largest
in North America. It is also Canada’s leading publisher
of consumer magazines and French-language educational resources,
the second-largest community newspaper publisher, and its
digital platform delivers unique content through more than
120 Web sites. Its Marketing Communications Sector provides
advertising services and marketing products using new communications
platforms supported by database analytics, premedia, e-flyers,
email marketing, and custom communications. Transcontinental
is a growth-oriented company with a culture of continuous
improvement and financial discipline, whose values, including
respect, innovation and integrity, are central to its operation.
Transcontinental (TSX: TCL.A, TCL.B, TCL.PR.D) has approximately
12,500 employees in Canada, the United States and Mexico,
and reported revenue of C$2.3 billion in 2009. For more
information about the Corporation, please visit www.transcontinental.com.
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For information:
Media
Sylvain Morissette
Vice-President, Corporate Communications
Transcontinental Inc.
Telephone: 514 954-4007
sylvain.morissette@transcontinental.ca
Debora Haskel
Vice President Marketing
IWCO Direct
952 470-3295
debora.haskel@iwco.com
www.iwco.com
Financial Community
Jennifer F. McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: 514 954 2821
jennifer.mccaughey@transcontinental.ca
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