Transcontinental Inc., a Canadian printing house, yesterday announced that it purchased U.S. direct marketing services firm CC3 in a stock-and-cash deal worth $106 million.
The acquisition adds 1,100 employees and $127 million in annual revenue to Transcontinental, Montreal. CC3, Ivyland, PA, delivers 1.5 billion pieces of direct mail yearly.
In a statement, Transcontinental said that in the past year it had sought to expand its holdings in the U.S. direct marketing industry, which it sees as a growing niche that fits into the company's strategic vision. CC3 is expected to begin contributing to Transcontinental's earnings within 12 months, Transcontinental said.
CC3 operates six locations in Philadelphia and one in Los Angeles and has a total of 500,000 square feet of production capacity. In September, CC3 announced the opening of a 95,000-square-foot production facility in the Dallas/Fort Worth, TX, area.
The company also delivers database management services, provides online campaign management tools and has permission-based e-mail capabilities. Its customer base includes agencies, banks, telecommunications companies and insurance providers.