Ross Marowits, The Canadian Press
November 18, 2008 - 6:34 p.m.

MONTREAL - Transcontinental Inc. (TSX:TCL.A) says its purchase of a Toronto marketing and brand promotion agency is part of a strategy to develop custom advertising and publishing.

The Montreal-based printing and publishing company didn’t disclose in what manner much it’s gainful for the 130-employee Redwood Custom Communications.

Redwood will complement a newly created marketing communications sector, which provides database analysis, e-mail marketing, printing and other services, Transcontinental said.

“We think it certainly builds upon our strengths being a publisher and a printer,” Isabelle Marcoux, Transcontinental vice-chairwoman and vice president of corporate development, said in an interview.

She said Redwood is a Canadian leader in the progressive growth of custom magazines, websites and consumer marketing with occurring once a year sales in the tens of millions of dollars.

“It’s really expanding our service oblation into custom communications that includes fashion publishing.”

Transcontinental will gain new printing work as it shares the printing of Redwood magazines with Quebecor World (TSX:IQW) and St. Joseph Communications.

Redwood’s clients comprise Aeroplan, the Canadian Automobile Association, Home Depot, Mazda, Procter & Gamble, Sears and Sobeys

Transcontinental paid cash for the 75 per cent of Redwood that was owned by U.S. communications giant Omnicom. Redwood CEO Eric Schneider, who owns 25 per cent, remains an equity partner.

The 44-year-old Schneider said he wanted to join forces with Transcontinental because it shares his vision to grow the business.

“What I have been hankering by reason of is a much more engaged and involved partner,” before-mentioned Schneider, who will persist to leadership the acquired operation, which has offices in Toronto and New York.

Uniting several services under one roof leave offer customers the capability to better integrate their efforts, he said.