Transcontinental sells California operation to Hearst as print exodus continues
The US$42.8 million deal is the Montreal-based company's latest as it pivots toward the packaging industry
MONTREAL—Transcontinental Inc. is offloading another of its print assets as digital media continues wreak havoc in the newspaper industry.
The Canadian company’s latest agreement with Hearst Communications Inc. will see Transcontinental hand over the print operations of its Fremont, Calif. print to the U.S. publisher.
The facility prints the Hearst-owned San Francisco Chronicle, the West Coast’s largest newspaper. Related products and post-press services are also conducted at the plant. Transcontinental began printing the paper at the Fremont facility in 2009.
The Montreal-based company, which has begun pivoting toward the packaging industry as print publications struggle, will get US$42.8 million in the deal—a figure that includes a break fee for the early termination of its printing deal with Hearst and the sale of some of the plant’s printing equipment. Transcontinental will hang onto ownership of the facility, but lease the space to Hearst until the end of 2024.
The agreement will take effect April 2 of next year.