Montreal-based TC Transcontinental has announced the sale of its Fremont, California, building to Hearst for $75 million.
The transaction is subject to customary closing conditions and is expected to close during the fourth quarter of fiscal 2019.
TC Transcontinental anticipates using the net proceeds from this sale to reduce its debt in line with the goal of reducing its net indebtedness ratio below 2.0x by the end of fiscal year 2020, as well as to continue its transformation with targeted acquisitions, the company said.
Hearst had assumed printing operations at the plant in April 2018, the Toronto Star reported. The two companies had dissolved an outsourcing agreement that started in 2009 and had Transcontinental printing the San Francisco Chronicle for Hearst.