MONTREAL, QUEBEC--(Marketwired - Nov 17, 2014) - TVA Group (TSX:TVA.B), a subsidiary of Quebecor Media (TSX:QBR.A)(TSX:QBR.B), announced today that it has reached an agreement with TC Transcontinental to acquire 15 magazines for a cash consideration of $55.5 million. The transaction is subject to Competition Bureau approval.
When the transaction closes, TVA Group will become the sole owner of 11 of the newly acquired titles: Coup de pouce, Canadian Living, Véro Magazine, Décormag, Style at Home, Fleurs Plantes Jardins, Canadian Gardening, Québec Vert, The Hockey News, MaisonNeuves.com, Condo Maison Direct, along with the recettes.qc.ca, Quoi manger, and On the Table websites. TVA Group will also hold an effective 51% shares in Les Publications Transcontinental-Hearst Inc., publisher of Elle Canada and Elle Québec magazines, in partnership with Hearst Group, which holds a 49% share. As well, TVA Group and Bayard Group will each hold a 50% share in Publications Senior Inc., publisher of Le Bel Âge and Good Times magazines.
"Print media is facing growing competition from digital media and new technological platforms," noted Pierre Dion, President and CEO of Quebecor and Quebecor Media. "And bear in mind that the competition notably comes from increasingly powerful foreign players. In this landscape, print magazines, just like newspapers, need to be consolidated to ensure these traditional media survive and allow them to compete with digital media."
"This acquisition is in line with the Corporation's strategy of investing in the production and distribution of high-quality, rich, diverse entertainment and news media content," said Julie Tremblay, President and CEO of Media Group and TVA Group. "We are therefore very pleased to acquire these strong brands, which are amongst the most popular magazine titles in Canada, and complementary to those of TVA Publications titles."
"TVA Group has extensive experience in magazine publishing. This transaction will enable us to capture significant operational synergies and secure the segment's long-term profitability and viability. We anticipate that after these magazines are acquired they will contribute between $10 million and $14 million to operating earnings annually," concluded Julie Tremblay.
Until the transaction receives final approval from the Competition Bureau, TC Transcontinental will continue to operate those magazines.
About TVA Group
TVA Group, a subsidiary of Quebecor Media, is an integrated communications company engaged in the creation, production and distribution of audiovisual products, and in magazine publishing. TVA Group is the largest broadcaster of French-language entertainment, information and public affairs programming and publisher of French-language magazines in North America, and one of the largest private-sector producers of French-language content in North America. Its Class B shares are listed on the Toronto Stock Exchange under the ticker symbol TVA.B.
About Quebecor Media
Quebecor, a Canadian leader in telecommunications, news media, entertainment and culture, is one of the best-performing integrated communications companies in the industry. Driven by their determination to deliver the best possible customer experience, all of Quebecor's subsidiaries and brands are differentiated by their high-quality, multiplatform, convergent products and services.
Quebecor (TSX:QBR.A)(TSX:QBR.B) is headquartered in Québec. It holds a 75.36% interest in Quebecor Media, which employs nearly 14,000 people in Canada.
A family business founded in 1950, Quebecor is strongly committed to the community. Every year, it actively supports people working with more than 400 organizations in the vital fields of culture, health, education, the environment and entrepreneurship.
Visit our website: www.quebecor.com
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This press release contains certain forward-looking statements. All statements other than statements of historical facts included in this press release may be forward-looking statements. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. Forward statements in this press release include, but are not limited to, statements relating to: (i) the transaction and its completion; (ii) future financial performance, including synergies, profitability and earnings; and (iii) business and management strategies and potential impacts or benefits resulting from the transaction. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may prove to be incorrect since they are subject to risks and uncertainties that affect us. Due to such risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation. All amounts are in Canadian dollars.