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Canadian publishers ink deal
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December 21, 1998: 11:08 a.m. ET
Torstar to purchase newspapers from Quebecor in $350 million agreement
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NEW YORK (CNNfn) - Canadian publisher Torstar Corp. announced plans Monday to purchase several Sun Media newspapers from Quebecor, Inc.
Before the deal can go through, Quebecor must finalize its purchase of Sun Media by acquiring more than two-thirds of its outstanding common stock on a fully diluted basis. Quebecor's purchase of Sun Media is expected to be completed by Jan. 5, 1999.
The aggregate price to be paid by Torstar for the five newspapers is expected to exceed $350 million. The purchase will increase Torstar's daily circulation to 4.67 million copies, or 14.2 percent of the total for daily newspapers in Canada.
The newspapers being bought by Torstar include The Hamilton Spectator, The Record (Kitchener-Waterloo), and The Cambridge Reporter and The Guelph Mercury.
Torstar is the publisher of The Toronto Star, Canada's largest daily newspaper, with a circulation of about 460,000. The company's newspaper business generates more than 40% of Torstar's revenue.
In addition to being the world's No. 1 publisher of romance novels, Torstar also publishes children's literature, educational software, and activity books.
"This deal helps secure the strategic future of The Toronto Star and reaffirms our strong market presence in Southern Ontario," said John Honderich, publisher of the Toronto Star.
The deal will give Torstar the largest circulation and readership in southern Ontario.
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