Quad/Graphics Acquires Mexican Assets of Transcontinental Inc.

Sussex-based Quad/Graphics announced Wednesday it has agreed to acquire the Mexican operations of Transcontinental Inc. and sell its Canadian operations to the same company.

Quad will hold onto its operations in Vancouver and also receive a portion of Transcontinental’s Canadian book printing business, and its black-and-white book printing business transferred to the U.S . The transaction will also make Quad the leader producer of magazines, retail inserts and catalogues in Mexico.

The transaction is considered an exchange of assets of the two companies.

“This agreement is a win-win for Quad/Graphics and Transcontinental and one that will create long-term value for both companies,” said Joel Quadracci, Chairman, President and CEO of Quad/Graphics in a press release. “We have long recognized the high growth potential in Mexico and South America. This acquisition supports our strategy to grow profitably in geographies and segments where we can be a market leader through a diverse product offering, and a superior and efficient operating platform.”

The release states the transaction will allow Quad to redevelop its capital in Mexico, which has a population three times the size of Canada. The company’s Canadian business also has underfunded pension obligations and is a lower growth market, which made it a less compelling market for Quad.

Both companies have approved the transaction, but are currently subject to regulatory clearances in Mexico and Canada. The deal is expected to close in Fall.