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Paper on rollers about to be fed into the presses at the Transcontinental plant June 14, 2010. (J.P. Moczulski for The Globe and Mail)
Paper on rollers about to be fed into the presses at the Transcontinental plant June 14, 2010. (J.P. Moczulski for The Globe and Mail)

Transcontinental bolsters Canadian operations Add to ...

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.

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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.).

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