TM1203_Transcontinental Acquires CC3
For his part, Don McKenzie, President and CEO of CC3, said he is happy to join the Transcontinental family: "In our industry, Transcontinental has a reputation for having a culture based on teamwork and respect for others, and of being an efficient and flexible printer. Our two companies know each other well because CC3 already has a business relationship with Transcontinental Direct in the Philadelphia region. CC3 is a fast-growing company; our annual revenues have increased an average of 17% over the past three years and 25% in 2003 despite difficult market conditions. We'll be able to combine Transcontinental's expertise in short-run printing with our integrated database management systems and marketing skill set. It's great news for our clients and our employees. I'm very optimistic about the future."
Rémi Marcoux concluded: "Transcontinental has a solid balance sheet and this acquisition was financed from cash flow from operations and our bank credit facilities. With the acquisition of CC3, and assuming our takeover bid for printer and publisher Optipress in the Atlantic provinces is successful, we would be adding annualized revenues of nearly C$250 million, which will take Transcontinental over the two-billion-dollar mark for the first time. Combined with our internal sales development and efficiency improvement initiatives under Horizon 2005, these two acquisitions will make a significant contribution to achieving our growth objectives."