One of Canada’s largest book printers, Marquis, was recently acquired by US giant Lakeside Book Company. The transaction is causing concern among local publishers, who fear that in the current context where delays and printing costs are increasing, the new owner will prioritize foreign customers rather than Quebecers.
” The new [de l’acquisition] fell to us from the sky like a meteorite, says Jean-François Bouchard, chairman of the board of directors of the National Association of Book Publishers (ANEL). This is a big surprise, which raises many questions, since Marquis was a major supplier for the Quebec industry. »
Serge Loubier, president of Marquis, wants to be reassuring: “If an American buys a business in Quebec, it’s not to fill it with American books. Thanks to Lakeside’s major investments, we will even be more tired of producing more books. They are mainly interested in us for short and medium runs, which we are developing more in Canada. »
Marquis’ three print shops, located in Louiseville, Montmagny and Toronto, together employ some 600 people. The company prides itself on being “the largest book manufacturer in Canada”. The acquirer, Lakeside Book Company, founded in Chicago in 1864, was the largest in the United States, with sales of approximately C$1.7 billion.
Mr. Loubier will remain at the head of Marquis. He will now report to Dave McCree, CEO of Lakeside. Employees of the new Canadian subsidiary will also remain in place.
“By purchasing Marquis, Lakeside becomes perhaps the largest book printing company in the world, if not one of the top three,” explains the president. Marquis’ turnover amounts to 155 million dollars. The amount of the transaction, which was announced on Thursday, was however not specified.
A difficult market
At the head of the Fides group and Éditions La Presse, Mr. Bouchard explains that the acquisition of Marquis occurs in a “particularly tense” context in terms of costs and deadlines. “We have to book several months in advance to have our books printed. The transaction adds an additional layer of anxiety”.
The publisher says it has spoken to “several interlocutors” of its association since Thursday and that they were worried that Marquis “will produce more American impressions”. Mr. Bouchard points out that the exchange rate is “favorable to Americans” and that similar situations have already been observed in the past.
“For example, since the pandemic, the number of American book printings at Friesens in Manitoba, the largest printer of hardcover books in Canada, has exploded,” he says.
Mr. Loubier does not have precise figures as to the number of Quebec books that Marquis prints compared to all of his printings. “It’s between 20 and 30%,” he says. The French-Language Securities Bank also confirmed to the Duty that it did not record data on the printing market in Quebec.
Lakeside, “well established in Canada”
According to the president of Marquis, the transaction is therefore advantageous, both for the American company and for its new Canadian subsidiary. “Lakeside wanted to break into the Canadian market. The company will be able to benefit from our network, but we will also be able to continue to grow”.
Mr. Loubier adds that the acquisition “will in no way prevent the Quebec publishing community from continuing to do well”. He specifies that “Lakeside is already well established in Canada and considers the transaction above all as an investment”.
“The presence of Marquis in the main English-speaking and French-speaking Canadian markets will improve our responsiveness and our efficiency,” said Dave McCree, by way of a press release, Thursday.
What’s more, if the American giant acquired the Quebec flagship this year, it’s because “Marquis shareholders wanted to leave for a few months,” explains Mr. Loubier, without specifying a reason. “We wanted to refinance, we considered doing business with the banks, but this transaction was the best option for the company”.
Suffering from acute leukemia, a rare cancer which he was diagnosed with last December, Mr. Loubier is being replaced at the head of Marquis for a few months. He hopes to take over the reins of the company as soon as possible, and assures that he has not been in a rush to sell the company for this reason. “Lakeside have been very understanding. They really trusted my team.”
Mr. Bouchard affirms that he does not want to “impeach Marquis’ intentions”, but that he remains concerned about the state of the book printing market in Quebec. “Let’s hope that our concerns will not come true.”