CHANHASSEN, MN—Direct mail specialist IWCO Direct has entered into a definitive purchase agreement to acquire Transcontinental Direct’s U.S. operations, a high-volume direct mail organization with a network of facilities throughout the United States. Terms of the deal, which is expected to close this spring, were not revealed.
The sale includes operations in Warminster and Hamburg in Pennsylvania, along with Fort Worth, TX, and Downey, CA.
Transcontinental has made a concerted effort to automate operations for several years now, originally with the use of scripts and hot folders to automate specific tasks.
In the fourth quarter 2009, it recorded growth of 15% in adjusted operating income before amortization despite a 9% decrease in revenues compared to 2008.
Amidst the rising cost of postal rates and major cutbacks, publishers and catalogers have been forced to reevaluate their marketing and business strategies. Companies in both sectors looked at cost reduction, how to gain stronger customer loyalty and better ROIs, as well as adopting multi-channel strategies.
The salary excesses in the financial/investment banking world that fueled widespread public outrage, however, won't be found among the earnings of principal officers at the largest publicly held printing companies.
Last month, the San Francisco Chronicle became the first significant general interest daily to print its editions on high-quality glossy paper.
SAN FRANCISCO—The American newspaper has come a long way over the years, but in order for it to have any kind of future, it will need to continue moving in new and bold directions. The San Francisco Chronicle, for one, seems to be taking a leadership position in that respect.
Before unusual items and despite the difficult economic situation, Transcontinental’s profitability in the third quarter increased due to its rationalization program and the daily efforts by employees across the organization to improve efficiency and reduce costs.
Transcontinental Inc. has ordered four triple-wide versions of the Commander CT newspaper web press from Koenig & Bauer AG (KBA) for plants in Toronto, Calgary and Vancouver. The four presses will have a total of 16 towers, four single and two double folders, and six heatset dryers. Installation of all four presses will start in the first quarter of 2010.
