Transcontinental to buy PLM Group
By Adnews Staff
Montreal-based Transcontinental has made a takeover bid for Toronto-based commercial printer PLM Group. Under the terms of the all-cash offer, Transcontinental will acquire all outstanding PLM shares for $130 million, including debt. PLM's board of directors has recommended that shareholders accept the offer. Company founder, chairman and CEO Barry Pike, who controls 51.2% of PLM's shares, has signed an agreement to tender these shares and accept the buyout. "PLM is regarded highly by businesses, marketing firms and advertising agencies in Canada," said Luc Desjardins, president and CEO of Transcontinental. "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. PLM brings Transcontinental a dynamic sales force, which will augment cross-selling opportunities." The transaction is expected to close in October. PLM has 470 employees in four facilities in the Greater Toronto Area. In 2006, it reported revenues of approximately $126 million.