Rogers Communications Sells Maclean Hunter Printing Operations

Strategic Insights -

Rogers Communications Inc. has sold its Maclean Hunter Canadian printing operations for about $120-million, as part of its $3.1-billion takeover of Maclean Hunter Ltd. The Toronto-based company has retained Maclean Hunter Publishing Ltd., which will sign a long-term printing contract with Maclean Hunter Printing Ltd. to continue printing its Canadian consumer and business magazines for five years. The sale of the printing operations is one of several asset sales made by Rogers as part of its Maclean Hunter acquisition.

Key Takeaways:

  • Rogers Communications Inc. has sold its Maclean Hunter Canadian printing operations for about $120-million to Quebecor Printing Inc. and GTC Transcontinental Group Ltd.
  • The printing operations were among the assets Rogers acquired in its $3.1-billion takeover of Maclean Hunter Ltd.
  • Maclean Hunter Publishing Ltd. will sign a long-term printing contract with Maclean Hunter Printing Ltd. to continue printing its Canadian consumer and business magazines for five years.
  • GTC Transcontinental Group Ltd. purchased Yorkville Printing Group Ltd. with total revenue of $60-million, while Quebecor Printing Inc. purchased Maclean Hunter Printing Ltd. (Aurora), Litho Plus Ltd., Templeton Studios Ltd., and Jasper Printing Group Ltd. with total revenue of $130-million.
  • The proceeds from the sale of the printing operations will be used to reduce the Maclean Hunter corporate debt.
  • Total proceeds from all previous deals amounted to a little more than $2-billion, with which Rogers repaid its entire bridge loan used to finance the Maclean Hunter acquisition and $132-million of accrued interest.
  • The sale of the printing operations will bring the Maclean Hunter corporate debt down to $110-million.
  • The U.S. publishing assets of Maclean Hunter will likely be sold to three different buyers, and the proceeds will probably be sufficient to eliminate the rest of the Maclean Hunter debt.
  • The sale of the Canadian printing operations is expected to be completed by mid-January, with all asset sales to be completed by the middle of February.

Statistics:

  • Total revenue of the printing operations purchased by Quebecor Printing Inc. and GTC Transcontinental Group Ltd. - $130-million (Quebecor) and $60-million (GTC)
  • Number of printing plants operated by GTC Transcontinental Group Ltd. - 2
  • Number of printing facilities owned by Quebecor Printing Inc. - approximately 5
  • Total proceeds from the sale of the printing operations - $120-million
  • Total proceeds from all previous deals - a little more than $2-billion
  • Total corporate debt of Maclean Hunter Ltd. - $230-million (initially), $110-million (after the sale of the printing operations)
  • Number of asset sales made by Rogers as part of its Maclean Hunter acquisition - 6

Sources:

  • Rogers Communications Inc. press release, no date
  • "Rogers Communications sells Maclean Hunter printing operations for $120-million," The Globe and Mail, November 1996
  • "GTC buys Yorkville printing group for $60-million," The Globe and Mail, November 1996
  • "Quebecor buying Maclean Hunter printing operations for $130-million," The Globe and Mail, November 1996