Transcontinental bids on PLM, direct marketing
In a move intended to build its presence in direct marketing, printer Transcontinental Inc. has made a cash offer to acquire all of PLM Group Ltd.'s approximately 29.5 million shares at C$3.50 per share.
PLM, Toronto, is Canada's fourth-largest printer. Its services include pre-media, digital printing and the ability to print a wide range of marketing-related commercial printing products.
"With PLM, we will become a leader in Canada's direct marketing industry - a fast-growing segment where Transcontinental is already a major player in the United States; PLM will also complement our product and service offering in the Greater Toronto Area," said Luc Desjardins, president/CEO, Transcontinental, in a statement.
The offer from Montreal-based Transcontinental represents a premium of 19 percent over the closing price of PLM shares on the Toronto Stock Exchange on Aug. 13, the day before PLM announced it was in exclusive talks with a potential buyer.
The deal is expected to close in October.