Transcontinental sells its U.S. direct mail operations
Thursday, February 11, 2010
Press release from the issuing company
MONTREAL --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.