Quebecor Gets OK to Sell Europe Operations for $206 Million

Quebecor World Inc. has received final court approval to sell its European operations to Hombergh/De Pundert Group (HHBV), a Netherlands based investment group for 133 million euros ($206.2 million).

Under the terms of the agreement, HHBV has deposited 46.5 million euros ($72.1 million) in escrow to be released to Quebecor World at closing, which is expected at the end of this month, according to Quebecor.

“The sale of our European operations is an important step in our restructuring activities that we believe should enable us to exit creditor protection in North America as a stronger player in our industry,” said Jacques Mallette, CEO, in a statement.

Last winter, the printing giant was granted protection from its creditors under the Canadian Companies' Creditors Arrangement Act. Several of its U.S. subsidiaries were covered by the filing, which was heard and ruled on by the Quebec Superior Court (Direct Newsline, Jan. 23).
Additionally, the company filed for Chapter 11 protection in the U.S. Bankruptcy Court in New York.

The firm’s European operations currently include 17 printing and related facilities employing approximately 3,500 people in Austria, Belgium, Finland, France, Spain and Sweden. Quebecor World Europe produces magazines, catalogs, retail inserts, direct mail products, book and directories for many of the world’s largest retailers, publishers and branded goods companies.

Separately, Quebecor earlier this week said it planned to merge its retail insert, catalog, direct mail, and Sunday magazine printing divisions in the U.S. into a new integrated marketing group.