Postmedia acquires Sun Media Corporation’s English-language operations
Major deal involves 175 newspapers including the Toronto Sun
Quebecor announced today that it has reached an agreement with Postmedia Network Canada Corporation (Postmedia) whereby Postmedia will acquire Sun Media Corporation’s English-language operations, consisting of 175 newspapers and publications, including the Sun chain of dailies, namely the Ottawa Sun, Toronto Sun, Winnipeg Sun, Edmonton Sun and Calgary Sun, as well as The London Free Press, the 24 Hours dailies in Toronto and Vancouver, and community dailies and weeklies, buyers’ guides and specialty publications. The transaction also includes the Canoe portal in English Canada, part of the national sales team based in Toronto and the Islington, Ontario printing plant. The $316-million purchase price will be payable in cash, subject to the customary adjustments and to a$10M adjustment, related primarily to real estate properties to be disposed of by Sun Media prior to closing and to be credited to Postmedia at closing.
The transaction is subject to approval by the Competition Bureau. While it is under review, Sun Media Corporation will continue managing the assets and publications in question.
“Consumers now have many ways to get their news, and as a result the newspaper business has faced increasing competition from digital media and new technological platforms. Newspaper revenues have been declining year by year,” said Pierre Dion, President and CEO of Quebecor and Quebecor Media. “This transaction therefore comes at a time when the Canadian newspaper business absolutely needs consolidation to remain viable and to compete with digital media. The transaction will also keep Sun Media Corporation’s properties in the hands of a well-established Canadian group. Postmedia possesses extensive expertise and the ability and will to invest in these publications’ long-term development. This is good news for the Canadian newspaper business and the people who work in it.”
“I want to thank all the employees who have devoted their talents and energies every day to informing their community,” said Julie Tremblay, President and CEO of Sun Media Corporation. “Sun Media Corporation’s success has been built on their passion and dedication, year after year. Postmedia will be able to count on teams that demonstrate the ability to innovate in a fast-changing industry.”
TD Securities is acting as exclusive financial advisor to Quebecor on this transaction.