Quebecor Expands with an East Coast Acquisiton of Retail Printing Corporation
Press release from the issuing company
MONTREAL-June 26, 2001--Quebecor World Inc. announced today that it has signed a definitive agreement to purchase Retail Printing Corporation of Taunton, Massachusetts.
The Company operates state-of-the-art printing plants in Taunton and in Nashville, Tennessee. At the same time, Quebecor World also announced a west coast expansion of its retail platform to enhance its ability to serve retail customers on the west coast. The first part of this expansion is the purchase of a new Goss C700E (39"x72'') press for its Merced, California plant. Also under consideration as a part of this expansion is further investment in the western region of the United States.
These transactions enhance Quebecor World's strength as the only printer providing both long-run and multi-versioning printing services to retail and newspaper insert customers across the entire continent, and serve as further evidence of Quebecor World's stated goal of growing business both organically and through acquisitions that provide a strategic fit.
Charles G. Cavell, President and CEO of Quebecor World stated, "We are continuing to assess potential investments in all three continents where we operate. The mix of products and geographic location of the Retail Printing Corporation plants fits into our strategy of developing the strongest and most flexible retail insert platform in the industry. This transaction is also in line with our ongoing practice of strategic acquisitions that are accretive to earnings.''
"Retail Printing Corporation is a highly efficient, low-cost producer of retail and newspaper inserts that will be a great addition to Quebecor World'' said Marc Reisch, Chairman, President and CEO of Quebecor World North America. "Quebecor World enjoys a leading market share in the long-run retail insert business. This acquisition on the east coast and our capital expansion out west extends our retail platform, allowing us to offer national and local marketers the advantages of our long-run gravure capability complemented by the flexibility of our offset network. No other printer in North America offers its customers the value of long-runs combined with the targeting of shorter runs.''
Until now marketers in need of a mix of services were forced to change vendors and alter processes, in addition to learning new distribution tactics. Now as their needs change from season to season or as they alter their advertising strategies in response to economic changes, they can utilize the diverse platform of Quebecor World.
The Taunton and Nashville facilities fit seamlessly into Quebecor World's existing Retail Business Unit of 19 manufacturing sites in North America. Combined with the west coast new equipment expansion, they help uniquely to position the Company to offer coast-to-coast, one-stop shopping solutions to its customers.
"This acquisition and capital expansion allow us to offer more production capacity to our customers, which brings greater value to their marketing campaigns and our relationships,'' said David Boles, President of Quebecor World's Retail Business Group. "Not only do the Retail Printing Corporation's plants have the most modern equipment, they have excellent distribution relationships in the heavily populated Northeast corridor. The acquisition combined with our west coast expansion further evidences Quebecor World's ongoing commitment to make both organic and acquisition investments to provide clients with complete coast-to-coast solutions.''
Retail Printing Corporation has annualized sales of approximately $100 million and employs about 400 people in its two plants. The Company enjoys significant relationships with many leading national and regional retailers and grocers.
"We are very excited to bring the capabilities of Quebecor World to our customers'', said Doug Small, Senior Vice President of Retail Printing. "In addition, the personal growth opportunities that this transaction brings to our employees are enormous. Our family has worked hard over the years to build a customer and employee focused company, and we are happy to have Quebecor World help us get to the next level.''
This transaction is expected to close by mid-July, 2001.
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