TC Transcontinental will receive a cash payment of $42.8 million from Hearst as compensation for the early termination of the printing agreement, for the sale of some of its printing equipment, and for services to be rendered as part of a transitional service agreement. The amount will be received mainly in 2017, and the balance in 2018.
On April 2, TC Transcontinental employees working at the Fremont plant will be transferred to Hearst. TC TC Transcontinental maintains ownership of its Fremont, California plant and will be renting the facility to Hearst until the end of 2024.
The corporation will transfer the remaining equipment in Fremont to other TC Transcontinental Canadian plants in 2018 to create efficiencies within its retail printing platform. TC Transcontinental will also transfer the retail volume from the Fremont operation to other plants in its printing network.