|By Marketwired .||
|February 17, 2014 01:30 PM EST||
MONTREAL, QUEBEC -- (Marketwired) -- 02/17/14 -- Transcontinental Inc. (TSX: TCL.A)(TSX: TCL.B)(TSX: TCL.PR.D) and Gesca Ltd. reached an agreement amending the terms and conditions of the contract to print the La Presse newspaper. The agreement gives Gesca greater flexibility to modulate, in accordance with its needs, the printing services for the La Presse newspaper. For its part, TC Transcontinental continues to be the exclusive printer of La Presse, maintaining ownership of the printing plant and equipment.
"Given the current pace of change in the newspaper industry coupled with La Presse's digital strategy push over the past year, the amended agreement aligns TC Transcontinental and Gesca Ltd. more closely with new realities, said Francois Olivier, President and Chief Executive Officer of Transcontinental Inc. "In fact, the amended agreement is mutually beneficial. TC Transcontinental will receive a one-time cash payment of $31 million from Gesca Ltd. to compensate for price reductions on future services and the increased flexibility provided to Gesca so that it can successfully pursue its multiplatform strategy," concluded Mr. Olivier.
"Given the rapid pace of change in the newspaper industry and the success of La Presse+ and our multiplatform offering, we wished to review the terms of our printing contract in order to obtain greater flexibility with respect to our printing needs," said the President and Publisher of La Presse, Guy Crevier. "We are pleased to have concluded this agreement and to be continuing our excellent business relationship with 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), including TC Transcontinental, TC Media and TC Transcontinental Printing, has over 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-Jean
Senior Advisor, Corporate Communications
Financial Community: Jennifer F. McCaughey
Senior Director, Investor Relations and
External Corporate Communications
[email protected] / www.tc.tc
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