Montréal, September 3, 2019 – TC Transcontinental (TSX: TCL.A TCL.B) (the "Corporation") announces the sale of its Fremont, California building to Hearst for a price of US$75 million. As a reminder, the Corporation had already transferred to Hearst the printing operations of its Fremont California facility in April 2018.
The pending transaction is subject to customary closing conditions and is expected to close during the fourth quarter of fiscal 2019. Once the sale is completed, TC Transcontinental will receive a one-time cash payment of US$75 million. The Corporation currently anticipates using the net proceeds from this sale to reduce its debt in line with the goal of reducing its net indebtedness ratio below 2.0x by the end of fiscal year 2020, as well as to continue its transformation with targeted acquisitions.
About TC Transcontinental
TC Transcontinental is a leader in flexible packaging in North America, and Canada’s largest printer. The Corporation is also a Canadian leader in its specialty media segments. For over 40 years, TC Transcontinental's mission has been to create products and services that allow businesses to attract, reach and retain their target customers.
Respect, teamwork, performance and innovation are the strong values held by the Corporation and its employees. TC Transcontinental's commitment to its stakeholders is to pursue its business activities in a responsible manner.
Transcontinental Inc. (TSX: TCL.A TCL.B), known as TC Transcontinental, has over 9,000 employees, the majority of which are based in Canada, the United States and Latin America. TC Transcontinental had revenues of more than C$2.6 billion for the fiscal year ended October 28, 2018. For more information, visit TC Transcontinental's website at www.tc.tc.
Source: TC Transcontinental