* Quad/Graphics to acquire Transcontinental’s Mexican printing assets
* Quad/Graphics to sell Canadian assets to Transcontinental
* Deal to help Quad/Graphics expand in Latin America
* Deal to strengthen Transcontinental in Canada (Follows alerts)
July 13 (Reuters) - Quad/Graphics Inc said it will swap its Canadian assets with Transcontinental Inc’s (TCLa.TO) Mexican printing assets, to expand its presence in the Latin American country.
Quad/Graphics will acquire Transcontinental’s three facilities in Mexico. Transcontinental had forecast revenue of $70 million in 2011 from these facilities, which have around 900 employees.
Transcontinental, which is Canada’s biggest commercial printer, will also transfer to Quad/Graphics its black and white book printing business for U.S. export, which represents about $25 million in revenue.
In exchange, Montreal-based Transcontinental will acquire seven Quad/Graphics’ Canadian facilities, including six printing plants. These facilities employ about 1,500 people and are expected to generate revenue of about $310 million in 2011.
Transcontinental will assume retirement pension and post-retirement obligations of about $75 million.
Shares of Sussex, Wisconsin-based Quad/Graphics were up 3 percent at $37.06 on the New York Stock Exchange while those of Transcontinental were trading at C$15.75, up 3 percent, on the Toronto Stock Exchange. (Reporting by Rachana Khanzode in Bangalore; Editing by Viraj Nair)