Blockbuster Trade for Quad, Transcontinental

In the transaction, Transcontinental will also transfer to Quad/Graphics its black-and-white book printing business destined for U.S. export, which represents approximately US$25 million in sales.

As part of the Canadian transaction, Transcontinental will assume retirement pension and post-retirement obligations approximating US$75 million and acquire seven Quad/Graphics facilities (consisting of six printing plants and a premedia operation) that employ approximately 1,500 people and are forecasted to generate US$310 million of revenues in fiscal year 2011. The facilities are located in Aurora, Concord and Markham (Toronto), Ontario; LaSalle and Montreal, Quebec; Edmonton, Alberta; and Dartmouth, Nova Scotia.