Topic: How To Invest

The Successful Investor Hotline – Friday, September 6, 2019

Article Excerpt

TRANSCONTINENTAL INC., $14.73, Toronto symbol TCL.A, completed its $1.7 billion acquisition of Chicago-based Coveris Americas in May 2018. That firm makes plastic packaging for consumer and industrial products at 21 plants in the U.S., Canada, the U.K., Ecuador, Guatemala, Mexico, New Zealand and China. With the Coveris purchase, Transcontinental now gets over half of its revenue from packaging. That cuts the company’s reliance on its slowing commercial printing and advertising flyer distribution operations. This week, the company agreed to sell its printing facility in Fremont, California, to Hearst Corp., the publisher of The San Francisco Chronicle newspaper, for $75 million U.S. Transcontinental originally began printing the paper in 2009 under a 15-year contract. However, Hearst cancelled that deal in April 2018 and took over the printing operations. As a result, it paid Transcontinental an early termination fee of $42.8 million U.S. Meantime, the company’s overall revenue in the fiscal 2019 third quarter, ended July 28, 2019, fell 3.8%, to $728.9 million from $757.9 million…