Net sales in the quarter were $1.65 billion, up $13.4 million or 0.8% from the second quarter of 2016. On an organic basis, consolidated net sales declined 0.8% driven by volume growth in the International and Strategic Services segments and favorable changes in fuel surcharges which were more than offset by lower postage pass through sales in the Strategic Services segment, net volume declines in the Variable Print segment and modest price erosion across all segments. Gross profit in the second quarter of 2017 was $303.1 million or 18.4% of net sales versus $316.4 million or 19.4% of net sales in the prior year quarter. The decline was primarily due to unfavorable mix in several businesses, modest price pressure in all segments and unfavorable changes in foreign exchange rates. Click Read More below for additional details.
TC Transcontinental (TSX: TCL.A TCL.B) announced today the acquisition of Artisan Complete Limited, a company specialized in the creation of engaging retail environments, point-of-purchase displays and large format printing. This transaction, which follows the acquisition of Holland & Crosby Limited in October 2019, is aligned with TC Transcontinental’s strategy to continue growing in the in-store marketing product printing vertical, where the Corporation is already a key player in Canada.
Located in Markham, Ontario, Artisan Complete employs 187 people and is known as one of North America’s most awarded in-store marketing companies. Since its founding in 1971, Artisan Complete has always been on the leading edge of retail, helping its customers connect with their audiences and position their brand for success. The company takes a holistic approach to every project by combining innovative design, turn-key production and strategic deployment to deliver engaging experiences.
With this transaction, TC Transcontinental is further expanding its in-store marketing offering, allowing the company to provide its existing customers with a broader portfolio of products and attract new customers, and is strengthening its partnerships with major retailers. Artisan Complete offers services that are critical for its largest customers, namely retail environment design, as it focuses on “in-store customer experience”. It has a strong presence within the display segment where it uses specialized equipment and unique capabilities to help retailers and consumer packaged goods customers succeed.
“We are pleased to welcome Artisan Complete’s talented team to TC Transcontinental and we look forward to beginning the integration process,” said François Olivier, President and Chief Executive Officer of TC Transcontinental. “Artisan Complete is very well known within the industry and its capabilities will complement TC Transcontinental Printing’s offering in three key areas of in-store marketing, namely promotional point-of-purchase, permanent signage and display/décor. It is a great addition to our Printing Sector and we anticipate that our in-store marketing vertical, which now employs approximately 550 employees, will generate revenues of close to $140 million on an annualized basis. We are in an excellent position to present our customers with an even broader range of innovative and coveted products and services.”
Edwin Lemieux, President of Artisan Complete, who will continue in his role with the TC Transcontinental Printing team, added: “This transaction marks a turning point for our company as we are joining Canada’s leader in the printing industry. We know that TC Transcontinental is firmly committed to maintaining its leadership for the long term and to continue growing its in-store marketing vertical, and this vision is very compelling for our team. Joining their ranks will create new opportunities for our talented people and position us to achieve new heights in the future. We couldn’t be more pleased. This is a fantastic way for all of us to start the new year!”