TC Transcontinental acquires BGI Retail Inc. and further expands its offering of in-store marketing solutions
Montréal, June 1, 2021 – TC Transcontinental (TSX: TCL.A TCL.B) announced today the acquisition of BGI Retail Inc., a full service in-store design and solution partner for retailers and global brands. This transaction, which follows the acquisition of Holland & Crosby Limited in October 2019 and Artisan Complete Limited in January 2020, is aligned with TC Transcontinental’s objective to continue growing in the in-store marketing (ISM) vertical, a market with significant opportunities where TC Transcontinental Printing’s ISM Group is already a leading player in Canada.
Located in Paris, Ontario, BGI Retail employs 123 people and offers an integrated value proposition focused on in-house design, engineering, manufacturing, installation and management of retail solutions and brand-defining consumer experiences, for both retailers and global brands across North America. Its products and services include plastic and metal fabrication, millwork and fixturing, print and graphics, and decor. With this acquisition, TC Transcontinental Printing’s ISM Group now employs more than 700 people and, combined with recent new business, is expected to generate revenues of close to $200 million on an annualized basis.
BGI Retail’s capabilities are a natural fit with TC Transcontinental Printing’s ISM Group offering which includes the conception, design and building of the full range of indoor and outdoor signage, displays, fixtures and furniture for retail spaces whether made from paper, cardboard, plastic, wood or metal. BGI Retail will be complementary in several key areas, especially in permanent signage and custom displays. Furthermore, this acquisition offers significant cross-selling potential, in-sourcing opportunities, and stronger design and execution capabilities that create a unique offering and further strengthen TC Transcontinental’s position in the ISM space.
“BGI Retail is a great addition to our ISM Group. We welcome its dynamic team as new colleagues at TC Transcontinental” said Brian Reid, President of TC Transcontinental Printing. “With this acquisition, we are in a stronger position to offer full-service ISM solutions with a broad range of attractive and innovative products and services. As retailers prepare for a post-pandemic environment by reinvesting to optimize the in-store customer experience, TC Transcontinental stands ready to help with its comprehensive ISM products and services offering.”
Kristian Carson, BGI Retail Inc. Principal, added: “This is a great strategic move for two companies that share similar visions, values and culture. BGI’s constant focus on evolution made us explore many options over the last few years, and none held the opportunities that joining forces with TC Transcontinental can provide. Working closely with the TC Transcontinental team in the lead-up to this transaction has furthered our confidence in their ability to understand our business and the everchanging landscape of the retail sector. We are excited to bring BGI’s complementary skill sets to the table to expand an already wide portfolio of services and capabilities.”
About TC Transcontinental
TC Transcontinental is a leader in flexible packaging in North America, and Canada’s largest printer. The Corporation is also positioned as the leading Canadian French-language educational publishing group. For over 45 years, TC Transcontinental's mission has been to create quality products and services that allow businesses to attract, reach and retain their target customers.
Respect, teamwork, performance and innovation are the strong values held by the Corporation and its employees. TC Transcontinental's commitment to its stakeholders is to pursue its business activities in a responsible manner.
Transcontinental Inc. (TSX: TCL.A TCL.B), known as TC Transcontinental, has close to 8,000 employees, the majority of which are based in Canada, the United States and Latin America. TC Transcontinental had revenues of approximately C$2.6 billion for the fiscal year ended October 25, 2020. For more information, visit TC Transcontinental's website at www.tc.tc
Our public communications often contain oral or written forward-looking statements which are based on the expectations of management and inherently subject to a certain number of risks and uncertainties, known and unknown. By their very nature, forward-looking statements are derived from both general and specific assumptions. The Corporation cautions against undue reliance on such statements since actual results or events may differ materially from the expectations expressed or implied in them. Forward-looking statements may include observations concerning the Corporation's objectives, strategy, anticipated financial results and business outlook. The Corporation's future performance may also be affected by a number of factors, many of which are beyond the Corporation's will or control. These factors include, but are not limited to, the economic situation in the world, structural changes in the industries in which the Corporation operates, the impact of digital product development and adoption on the demand for retailer-related services and other printed products, the Corporation's ability to generate organic growth in highly competitive industries, the Corporation's ability to complete acquisitions in the packaging industry and properly integrate them, the inability to maintain or improve operational efficiency and avoid disruptions that could affect its ability to meet deadlines, cybersecurity and data protection, the political and social environment as well as regulatory and legislative changes, in particular with regard to the environment and door-to-door distribution, changes in consumption habits related, in particular, to issues involving sustainable development and the use of certain products or services such as door-to-door distribution, change in consumption habits or loss of a major customer, customer consolidation, the safety and quality of its packaging products used in the food industry, the protection of its intellectual property rights, the exchange rate, availability of capital at a reasonable rate, bad debts from certain customers, import and export controls, raw materials and transportation costs, recruiting and retaining qualified personnel in certain geographic areas and industry sectors, taxation, interest rates and the impact of the COVID-19 pandemic on its operations, facilities and financial results, changes in consumption habits from consumers and changes in the operations and financial position of the Corporation's customers due to the COVID-19 pandemic and the effectiveness of plans and measures implemented in response thereto. The main risks, uncertainties and factors that could influence actual results are described in the Management's Discussion and Analysis for the year ended October 25, 2020 and in the latest Annual Information Form.
Unless otherwise indicated by the Corporation, forward-looking statements do not take into account the potential impact of non-recurring or other unusual items, nor of disposals, business combinations, mergers or acquisitions which may be announced or entered into after the date of June 1st, 2021. The forward-looking statements in this press release are made pursuant to the “safe harbour” provisions of applicable Canadian securities legislation. The forward-looking statements in this release are based on current expectations and information available as at June 1st, 2021. Such forward-looking information may also be found in other documents filed with Canadian securities regulators or in other communications. The Corporation's management disclaims any intention or obligation to update or revise these statements unless otherwise required by the securities authorities.
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