Business
Transcontinental Inc. sells its U.S. direct mail operations
Transcontinental Inc. sells its U.S. direct mail operations
About this update from Transcontinental Inc. Class A
[{"type":"text","content":"\n\n\n\nFeb. 10, 2010 (Canada NewsWire Group) -- MONTREAL, Feb. 10 /CNW Telbec/ -- 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.About IWCO DirectIWCO Direct (www.iwco.com), one of the nation's largest providers of direct marketing solutions, has served the needs of North American companies for more than 40 years. IWCO Direct helps its customers acquire, retain, and engage customers and members through highly personalized paper-based and digital marketing programs. The company provides direct marketing like no one else by seamlessly supplying all design, production, mailing and management services in an integrated \"total package\" supply chain solution. IWCO Direct pioneered commingling and continues to provide its customers with dramatic postage savings and faster ti...