TC Media, a division of TC Transcontinental, reached a $75 million agreement to purchase 74 Quebec-based community newspapers and associated online properties owned by Sun Media, a subsidiary of Quebecor Media.
The agreement has been approved by the boards of both companies, but is still subject to regulatory approval.
“Acquiring Sun Media’s 74 community papers in Quebec is in line with our strategy to strengthen the core assets of TC Media and develop a local digital media offering for businesses and communities,” stated Francois Olivier, President and CEO of TC Transcontinental. “This transaction will add approximately $20 million to TC Transcontinental's operating income before amortization.”
As part of this transaction, TC Transcontinental also signed a parallel agreement with Quebecor Media to print some of its magazines and direct-marketing materials. TC Transcontinental Printing will start printing Quebecor Media products on or about February 1, 2014.
“Today’s announcement by TC Transcontinental and Quebecor Media is a historic one," continued Olivier. "On the one hand it shows the relevance of our state-of-the-art printing platform and our ability to help publishers and marketers, and on the other it demonstrates our ability to change in keeping with the new realities of the local media market."
Olivier also pointed to TC Transcontinental’s growing focus on building multiplatform offerings across all of Quebec. Together, the TC Media and TC Transcontinental Printing operations have more than 9,000 employees in Canada and the United States, generating revenues of $2.1 billion in 2013.
“The digital revolution has completely transformed the local print media market in recent years. Clients can now place their ads on a multitude of platforms that did not exist just over a decade ago,” stated Robert Depatie, President and CEO of Quebecor Media, parent company of Sun Media. “We are delighted that with this transaction we are ensuring Quebec ownership of these papers for the future by selling them to another major Quebec company, TC Media.”