Canada-based Transcontinental has acquired flexible packaging company Coveris’ Americas division for CAD 1.72 billion ($1.32 billion).
Coveris Americas produces a variety of flexible plastic packaging solutions and paper products such as bags and pouches, shrink films and labels from 21 manufacturing facilities worldwide.
This acquisition strengthens Transcontinental’s position in the flexible packaging market, as the move expands its product portfolio for clients in the dairy, coffee, bakery and snacks industries and increases its overall production capacity.
Transcontinental claims the acquisition will make flexible packaging the largest and most profitable aspect of its operations, and will also allow the company to serve new clients in the beverage, protein and agriculture industries.
François Olivier, president and CEO of TC Transcontinental said: “We are thrilled to announce such a game-changing transaction for TC Transcontinental and to bring our vision of becoming a North American leader in flexible packaging to life,”
“The acquisition of Coveris Americas adds significant depth and scale to our existing platform, with flexible packaging operations now expected to be our largest division in terms of TC Transcontinental’s pro forma revenues based on its fiscal year 2017.
“This transaction complements and bolsters our existing product offering in several flexible packaging end markets including dairy, pet food and consumer products.”
Isabelle Marcoux, chair of the board of Transcontinental added: “Today’s announcement marks a turning point in TC Transcontinental’s 42-year history. This transaction crystallizes our strategic shift toward flexible packaging and solidifies our commitment to profitable growth.
“We are convinced that this transformational acquisition will be a driver in the creation of long-term value for all of our stakeholders.
“It is with pride that we begin the next chapter of our successful journey with Coveris Americas, its employees and customers, building on our values of respect, teamwork, performance and innovation.”
Craig Reese, CEO of Coveris Americas, said: “Today marks an exciting milestone for Coveris Americas as we join TC Transcontinental, a company that shares our passion for growth through innovation, service and quality.”
Source: FoodBev
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