Quebecor World completes sale of European operations

By Caroline Salls

Pittsburgh, June 26 - Quebecor World Inc. has completed the roughly €135 million sale of its European operations to Netherlands-based investment group Hombergh/De Pundert Group, according to a news release.

Under the purchase agreement, Quebecor World received €52 million in cash. Hombergh will also assume €61 million of net debt and a €21.5 million five-year note bearing interest at 7% per year payable to Quebecor World.

"We are pleased to conclude this transaction which will allow us to focus on our business in the Americas and which should enable us to exit creditor protection in North America as a stronger player in our industry," Quebecor World president and chief executive officer Jacques Mallette said in the release.

Quebecor World said its European operations consisted of 16 printing and related facilities that employ about 3,500 people in Austria, Belgium, Finland, France, Spain and Sweden and produce magazines, catalogs, retail inserts, direct mail products, books and directories.

Quebecor, a Montreal-based printing and marketing company, filed for Chapter 11 bankruptcy on Jan. 21 in the U.S. Bankruptcy Court for the Southern District of New York and filed for protection under the Companies' Creditors Arrangement Act in Canada. Its Chapter 11 case number is 08-10152.

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