<SEC-DOCUMENT>0000912057-01-533693.txt : 20011009
<SEC-HEADER>0000912057-01-533693.hdr.sgml : 20011009
ACCESSION NUMBER: 0000912057-01-533693
CONFORMED SUBMISSION TYPE: 6-K
PUBLIC DOCUMENT COUNT: 1
CONFORMED PERIOD OF REPORT: 20010927
FILED AS OF DATE: 20010927
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: QUEBECOR WORLD INC
CENTRAL INDEX KEY: 0001003470
STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL PRINTING [2750]
STATE OF INCORPORATION: A1
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 6-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-14118
FILM NUMBER: 1746552
BUSINESS ADDRESS:
STREET 1: 612 ST JACQUES ST
CITY: MONTREAL QUEBEC CANA
STATE: E6
BUSINESS PHONE: 5149540101
MAIL ADDRESS:
STREET 1: 612 SAINT JACQUES STREET
CITY: MONTREAL
STATE: E6
FORMER COMPANY:
FORMER CONFORMED NAME: QUEBECOR PRINTING INC
DATE OF NAME CHANGE: 19951115
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>a2060142z6-k.txt
<DESCRIPTION>QUEBECOR WORLD - FORM 6-K
<TEXT>
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For Press Release issued on September 27, 2001
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QUEBECOR WORLD INC. (Formerly known as Quebecor Printing Inc.)
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(Translation of Registrant's Name into English)
612 Saint-Jacques Street, Montreal, Quebec, H3C 4M8
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(Address of Principal Executive Office)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F)
Form 20-F Form 40-F X
(Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
<PAGE>
Press Release
of
QUEBECOR WORLD INC.
(Formerly known as Quebecor Printing Inc.)
Filed in this Form 6-K
Documents index
1. Press Release dated September 27, 2001 (# 29/01)
2. Supplemental Disclosure dated September 25, 2001.
3. Backgrounder
<PAGE>
[GRAPHIC OMITTED]
September 27, 2001 29/01
For immediate release Page 1 of 2
QUEBECOR WORLD INC. ACQUIRES
HACHETTE FILIPACCHI PRINTING ASSETS IN EUROPE
Montreal, Canada--Quebecor World Inc. announced today it has signed a binding
agreement pending regulatory approval to purchase the European printing
assets of Hachette Filipacchi Medias. The assets include printing and bindery
facilities in France and Hachette's 50% ownership of Helio Charleroi in
Belgium. Compagnie Nationale a Portefeuille (CNP) will retain it's 50%
ownership of the facility for the next three years.
"We continue to grow on a continental basis with assets in France, Spain,
Austria, Sweden, Finland, the U.K and now Belgium. This purchase will
significantly strengthen our European platform," said Charles G. Cavell,
President and CEO of Quebecor World Inc. "As well as buying printing
facilities from Hachette we are also extending our strategic partnership with
them by means of long-term enabling contracts that will benefit both our
businesses. These new contracts make Hachette one of our leading global
magazine customers. We work with them in Europe, North America and Latin
America. In addition this will continue to strengthen and support the
development of our global sales initiative. This is a win-win transaction for
both companies."
Hachette Filipacchi Medias is one of the world's top publishers with 210
magazine titles in 34 countries. It is the number one magazine publisher in
Europe. As part of the transaction Hachette is entering into long-term
agreement with Quebecor World to print many of its magazines. The estimated
value is $US 400 million over the term of the contracts, excluding paper.
"This transaction is consistent with Quebecor World's historic growth
strategy of buying printing assets of publisher/printers as they decide to
concentrate on their core businesses," added Mr. Cavell. "We will continue to
pursue this strategy on all three continents in which we operate."
The plants in France and Belgium operate long-run gravure presses and print a
combination of magazines, catalogs, and retail inserts. Some of the magazine
titles include Paris Match, Elle, Parents, Tele 7 Jours and TV Hebdo which
are two of the largest weekly magazines in France with circulations of three
and two million respectively. CNP (Compagnie Nationale a Portefeuille) will
partner with Quebecor World for three years in the Charleroi facility. CNP is
a public investment firm controlled by the Frere family of Belgium.
The purchase price also includes the acquisition of two bindery and
distribution operations in the Paris region, one of which will be operated as
a joint venture with Hachette. Both these facilities do finishing work for
Hachette and several other publishers.
<PAGE>
Page 2 of 2
"This is a very important transaction for Quebecor World Europe," said
Vincent Bastien, President and CEO, Quebecor World France. "The addition of
the Hachette equipment to our existing platform in France will allow us to
schedule Hachette magazines for multi-plant manufacturing in order to reduce
delivery time. This is a key strategic alliance that will significantly
improve our service to the French market and our ability to meet shareholder
expectations."
The transaction is subject to necessary regulatory approval.
Quebecor World Inc. (NYSE, TSE: IQW) is the largest commercial print media
services company in the world. The Company is a leader in most of its major
product categories, which include magazines, inserts and circulars, books,
catalogs, specialty printing and direct mail, directories, digital pre-media,
logistics, mail list technologies and other value-added services. The Company
has approximately 40,000 employees working in more than 160 printing and
related facilities in the United States, Canada, France, the United Kingdom,
Spain, Switzerland, Austria, Sweden, Finland, Brazil, Chile, Argentina, Peru,
Colombia, Mexico and India.
Web address: www.quebecorworld.com
- 30 -
For further information, please contact:
Jeremy Roberts
Director, Corporate Finance and
Investor Relations
Quebecor World Inc.
(514) 877-5118
(800) 567-7070
Tony Ross
Director, Communications
Quebecor Word Inc.
(514) 877-5317
(800) 567-7070
Vincent Bastien
President and CEO
Quebecor World France
+33 1 55 62 11 22
<PAGE>
[OBJECT OMITTED]
Supplemental Disclosure - September 25th, 2001
Acquisition of European Printing Assets of Hachette Filipacchi S.A.
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TRANSACTION RATIONALE
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o Strengthens strategic alliance with one of the world's leading global
publishers and the largest magazine publisher in Europe.
o Establishes IQW as the only printer capable of servicing Hachette's global
print needs (North America, Europe, Latin America).
o Complements IQW's existing long term strategic relationship with Hachette
in North America (where Hachette is one of IQW most significant magazine
customers and where IQW is its core print supplier, spanning 15 titles
which include Woman's Day, Elle, Car and Driver, Road and Track)
o Secures partnership with Hachette as it expands its global reach in Latin
America (IQW currently prints Elle magazine for Hachette in Chile, as well
as numerous books from its facilities in Mexico and Columbia)
o Provides Hachette with a unique multi-plant gravure platform in France and
Belgium which will reduce its costs and improve its time to market
(critical in the kiosk-driven market)
o Creates a stable, on-going relationship and revenue base through long term
enabling contract
o Creates opportunity for cost reductions which are not available to Hachette
as current owner
o Increases bindery and logistics capabilities in France to reduce
sub-contracting and create full service capabilities for print customers in
continental Europe
o Reinforces IQW's successful approach at developing global sales
relationships
o Capitalizes on an attractively priced investment opportunity
o Positions IQW to provide gravure print alternative to current sole gravure
supplier in the U.K. by exporting from Charleroi.
o Clearly establishes IQW as the dominant supplier in the high-margin gravure
printing process in France, with over 75% of the country's gravure
production capacity.
<PAGE>
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DESCRIPTION OF ASSETS TO BE ACQUIRED
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o Acquire 2 modern gravure facilities and additional finishing capacity
o 100% of Helio Corbeil (France)
o 50% and management control of Helio Charleroi (Belgium)
o other 50% held by Albert Frere Compagnie Nationale a Portefeuille
o provides local market presence in order to ensure successful
ownership transition
o IQW to have control through shareholders' agreement
o Addition of 7 new gravure presses, 4 of which are in France. Total
number of IQW gravure presses in France now at 15, out of a
total of 21.
o Markets served: Catalog, retail, magazines (incl. Paris Match, Elle,
Parent, Tele 7 Jours)
o Significant portion of current production output dedicated to Hachette
publications
o Total IQW gravure presses in France now
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LONG TERM PRINTING CONTRACT WITH HACHETTE-FILIPACCHI ("H-F")
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o 10 year agreement (5+5)
o Valued at $400 million over life of contract for all existing H-F work
o Right of first refusal on all new H-F work in Europe
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FINANCIAL HIGHLIGHTS (2000 PRO FORMA)
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Purchase consideration $ 65 million (incl. assumption of debt)
Sales $ 135 million (excl. 50% minority)
EBITDA $15-$16 million (pre-synergies)
Implied multiple 4.1 - 4.3 (pre-synergies)
Incremental investment $15 - $20 million
EPS accretion Approx. 3 (cent) annualized
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
Quebecor World Inc. to purchase
Hachette Filipacchi Printing Assets in Europe
Backgrounder
August 2001
[QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
HACHETTE FILIPACCHI MEDIAS - A STRATEGIC PARTNER
Hachette Filipacchi Medias, active in 34 countries, is Europe's number one
magazine publisher:
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o 210 titles;
o including, to cite only a few: 31 editions of ELLE, 15 editions of ELLE
DECORATION, 11 editions of CAR AND DRIVER and associated magazines, 8
editions of PREMIERE and associated magazines, 4 editions of PARENTS and
associated magazines, 4 editions of QUO.
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It is the leading magazine publisher in France.
It ranks 3rd in the United States for special interest magazines.
Quebecor World is already Hachette's premier printer in North America. The
expansion of our relationship in Europe further demonstrates our global reach
serving customers on several continents.
1 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
IN FRANCE, HACHETTE FILIPACCHI MEDIA IS ALREADY ONE
OF QUEBECOR WORLD'S LARGEST CUSTOMERS FOR PRINTING OF
COVERS AND INSIDE PAGES OF SOME OF ITS MOST POPULAR TITLES:
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Maximal Onze Mondial
DVD Magazine Photo
Elle Decoration Journal de Mickey
Jeune et Jolie Tele 7 jeux
L'Echos des Savannes
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2 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
WITH THE ACQUISITION OF THE HACHETTE FILIPACCHI MEDIAS
PRINTING FACILITIES AND THANKS TO THE NEW PARTNERSHIP,
QUEBECOR WORLD WILL ALSO PRINT:
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Titles Circulation
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Tele 7 jours 3 million weekly
TV Hebdo 2 million weekly
Elle 359,000
Parents 378,100
Paris Match 828,600
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MARKET SHARE OF MAGAZINE MARKET FOR QUEBECOR WORLD FRANCE.
Before acquisition After acquisition
35% 50%
Magazines [PIE CHART] [PIE CHART]
3 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
QUEBECOR WORLD AND HACHETTE A POWERFUL PARTNERSHIP
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Quebecor World is extending its strategic partnership with Hachette via a
magazine printing agreement which will benefit both companies over the long
term.
The main agreement covers all of the work currently undertaken by Hachette
Filipacchi Medias with Helio Corbeil, Graphic Brochage, BHR and E2G.
The initial term is 5 years with a 5 year right of extension; the value of
this agreement applied over a 10-year period is estimated at $400 million.
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4 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
FRANCE: LEADING MAGAZINE MARKET
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Population of France: 59 million, 65% between ages 15 and 64.
Population of Belgium: 10 million, 66% between ages 15 and 64.
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The periodical press is flourishing. With 1,354 copies sold for each 1000
residents, FRANCE HAS THE WORLD'S HIGHEST LEVEL OF MAGAZINE READERSHIP.
Among the Top 100 magazines in France, six have a circulation of over one
million and eight of over 500,000 copies.
-"PROFILE OF FRANCE" PRINTED BY THE FRENCH MINISTRY OF FOREIGN AFFAIRS
EMBASSY OF FRANCE IN THE US - FEBRUARY 26, 2001
5 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
QUEBECOR WORLD PRINTS 28 OF THE TOP 100 MAGAZINES IN FRANCE
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TV Magazine Maxi Cuisine
Tele Loisirs Rustica
Pleine Vie Marie-Claire Idees
Telerama Mieux Vivre Votre Argent
Telecable Satellite Hebdo Top Famille
Tele Magazine Tele K7
Figaro Magazine Le Nouveau Detective
Figaro Madame VSD, Girls!
Top Sante Ca M'interesse
Marie-Claire Star Club
L'Equipe Magazine Marie France
Nous Deux L'Automobile Magazine
Auto Plus Marianne
Action Auto Moto Investir
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6 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
FRANCE: LEADING MAGAZINE MARKET
The 10 magazines with the largest circulation in France are weeklies and 7 of
them are television magazines. With the acquisition, Quebecor World will
begin printing 3 of these 10 magazines: TELE MAGAZINE, TELE LOISIRS and
VERSION FEMME, and we already print another weekly for Hachette, TELE 7 JEUX.
Weekly magazines have the highest average circulation per issue, driven by
the Television Press.
READERS OF MASS CIRCULATION MAGAZINES IN FRANCE:
96% of people over age 15 in France read at least one magazine during the
last publication period (less than 8 days for a weekly and less than 15 days
for a bi-monthly). On average, 187 issues are read per year per individual.
86% at home.
- Source - AEPM - 1999/2000 results
7 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
MAGAZINE ADVERTISING: A GROWING DEMAND
France ranks 3rd in Europe for mass media advertising, behind Germany and the
United Kingdom, and 5th in the world, the top two countries being the
United States and Japan.
- Source: US Dept of State and US Foreign Commercial Service
Print advertising accounts for a total of $205 billion for the United States,
Canada, Europe and Latin America combined. This figure represents more than
double the total for television, and is far ahead of radio/outdoor and
Internet advertising.
Advertising expenditures in Europe, 2000 (millions of $)
Print $76,560
Television $28,546
Radio/Outdoor $9,877
Internet $787
[pie chart]
Source: Universal McCann, Paul Kagan Associates, Zenith Media, Canadian
Marketing Association, European Mail Order Trade Association, American
Business Association, Wilkofshy Gruen Associates - * Newpapers (including
inserts), magazines, direct mail
8 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
ADVERTISING GROWTH
Advertising in European magazines has undergone double-digit or high
single-digit growth since 1996.
ADVERTISING
[pie chart]
1995 11943
1996 12406
1997 14183
1998 15355
1999 16598
2000 17800
Source: Zenith Media, Wilkofshy Gruen Associates
9 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
EXPANDING QUEBECOR WORLD'S GRAVURE NETWORK
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Quebecor World is acquiring 100% of the Hachette facility in Corbeil, located
near Paris, and the 50% share held by Hachette of a Belgian facility located
near Charleroi. La Societe CNP - a public investment firm controlled by the
Frere family of Belgium - will be Quebecor World's partner in the Charleroi
facility.
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These facilities expand Quebecor World's high-capacity gravure presses that
print a variety of magazines, catalogs and advertising inserts.
Modern high-speed presses in Charleroi and Corbeil will increase Quebecor
World's European gravure capacity by almost 50%
Due to the high investment cost gravure capacity is more limited on a global
basis. For long runs it is more efficient than offset and customers prefer
long-term agreements with higher returns.
Hachette transaction increases percentage of Quebecor World France's net
sales in gravure.
Before acquisition 50% After acquisition 60%
[pie chart] [pie chart]
Net Sales in gravure Net Sales in gravure
10 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
EXPANDING QUEBECOR WORLD'S GRAVURE NETWORK
New gravure capacity in Belgium will allow Quebecor World to give U.K.
magazine and retail customers an option to the current single U.K. supplier.
The Charleroi facility is close to chunnel access and will be managed as part
of the U.K.
French production will be shifted from Charleroi to Corbeil reducing
distribution costs.
Quebecor World is acquiring two binding and distribution facilities located
in the Paris region, one of which will be operated in joint venture with
Hachette.
[EUROPE MAP]
11 [QUEBECOR WORLD LOGO]
<PAGE>
QUEBECOR WORLD
HACHETTE FILIPACCHI
CONCLUSION
This core account will significantly strengthen our European printing
platform for mass circulation magazines and retail inserts.
Hachette will directly benefit from the restructuring of Quebecor World's
network in France. By accessing our network of plants, Hachette can reduce
lead times and distribution costs.
Combined with the rest of our French and European network, these assets will
allow Quebecor World to provide its customers with a unique range of services
unmatched in the marketplace.
Quebecor World's European gravure network will provide a unique alternative
to U.K. publishers who operate in a captive market.
Quebecor World has enjoyed excellent cooperation to date with the union
leadership. The negotiation process is moving forward in a positive manner.
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Quebecor World is pursuing its continental growth with facilities in France,
Spain, Austria, Sweden, Finland, the United Kingdom, and now in Belgium.
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12 [QUEBECOR WORLD LOGO]
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
QUEBECOR WORLD INC.
By: /s/ Marie D. Hlavaty
--------------------------------------------------
Name: Marie D. Hlavaty
Title: Vice President, General Counsel & Secretary
Date: September 27, 2001
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>