MONTREAL, QUEBEC--(Marketwired - May 30, 2016) - Transcontinental Inc. (TSX:TCL.A)(TSX:TCL.B) announced today
it is divesting of its assets in the province of Saskatchewan. The transaction includes the sale of its 13 local newspapers and
associated web properties, as well as some commercial printing equipment and related book of business in Saskatchewan, to Star
News Publishing Inc., a local newspaper publisher and printer with interests in Saskatchewan and Alberta. The sale of the local
newspapers is effective immediately, while the printing plant, located at 838 - 56th Street East in Saskatoon, will
remain in operation for a transition period, after which it will close.
"Given challenging market conditions and limited synergies with the rest of our assets, primarily in Quebec and Eastern
Canada, we have made the decision to divest of our newspaper publications, located throughout Saskatchewan, and today are
announcing the sale of these publications to Star News Publishing Inc.," said Julia Kamula, Senior Vice-President, TC Media
Local Solutions. "From a geographic perspective, the reality of operating a small number of newspapers in Western Canada was
simply not efficient for TC Media. The new owner's portfolio of assets is much more aligned with these publications, better
enabling their growth and continued evolution. This transaction is a very positive development for both our employees and these
operations moving forward."
The newspapers involved in this transaction are:
- Moose Jaw - The Moose Jaw Times Herald (Daily) and unCut (Weekly)
- Prince Albert - The Prince Albert Daily Herald (Daily), Rural Roots (Weekly) and SHOP P.A.
(Periodical)
- Swift Current - The Southwest Booster (Weekly)
- Coronach - The Triangle News (Weekly)
- Grenfell - The Grenfell Sun (Weekly)
- Broadview - The Broadview Express (Weekly)
- Oxbow - The Oxbow Herald (Weekly)
- Radville - The Radville Star (Weekly) and Deep South Star (Weekly)
- Southern Life (Monthly)
"In light of the current print market, we must continuously adapt and review our equipment utilization to maximize our
printing platform," said Jacques Grégoire, President of TC Transcontinental Printing. "Given the sale of our local
newspapers and the remaining commercial printing volume in the plant, we made the decision to dispose of our printing assets in
Saskatchewan. We are certain that customers will continue to be well served by the new owner and we thank them for their support
over the past several years."
Roger W. Holmes, owner of Star News Publishing Inc. added: "With our long-standing and innovative printing and publishing
roots in Saskatchewan and Alberta, we feel we are well positioned to take the TC Transcontinental publications and print
operations to the next level. The values that TC Transcontinental upholds are well aligned with our mission 'to serve our readers
with news and advertising of high integrity' and we welcome this opportunity."
Unfortunately, the closure of the Saskatoon printing plant will result in the loss of approximately 30 full time
positions when the transition period is complete. Transcontinental Inc. thanks these employees for their dedicated
contribution to the company.
About TC Transcontinental
Canada's largest printer, with operations in print, flexible packaging, publishing and digital media,
TC Transcontinental's mission is to create products and services that allow businesses to attract, reach and retain their
target customers.
Respect, teamwork, performance and innovation are strong values held by the Corporation and its employees. The Corporation's
commitment to all stakeholders is to pursue its business and philanthropic activities in a responsible manner.
Transcontinental Inc. (TSX:TCL.A)(TSX:TCL.B), known as TC Transcontinental, has over 8,000 employees in Canada and the
United States, and revenues of C$2.0 billion in 2015. Website www.tc.tc
About Star News Publishing Inc.
The Star News group of companies operates five community newspapers in Alberta and Saskatchewan in addition to printing over
60 different community newspapers in Western Canada.