Quebec print giant bought by Quad/ Graphics
Deal will create a new entity with 30,000 employeesTORONTO -- Quebec media giant Quebecor Inc.'s former printing arm World Color Press has been bought by U.S. rival Quad/Graphics Inc. as part of an all-stock deal.
No dollar figure was put on the acquisition of World Color Press, which changed its name from Quebecor World as it emerged from creditor protection last summer.
As part of the transaction, former Quebecor World shareholders will hold 40% of the shares in the new entity, with Wisconsin-based Quad/Graphics retaining a 60% stake.
The transaction will create a new entity with 30,000 employees in North America and Europe and $1.2 billion in financing arranged by JPMorgan Chase and U.S. Bank.
Quebecor World last July emerged from 18 months of bankruptcy protection in both the U.S. and Canadian markets after arranging a separate $800 million exit financing facility to repay around $540 million in debtors-in-possession financing.
Quebecor in 2008 spun off the Quebecor World division to focus on its Quebec-based cable, newspaper, TV magazine and Internet businesses.