TC Transcontinental, Canada’s largest printer and a key supplier of flexible packaging in North America entered into an agreement to take over the business of Coveris Americas, a business held by Coveris Holdings S.A. at a purchase price of US$1.32 billion (approximately C$1.72 billion).
Coveris Americas, headquartered in Chicago, Illinois is one of the top ten converters of flexible packaging and other value-added products in North America on the basis of revenues for its fiscal year ending December 31, 2017. Coveris Americas produces a wide range of flexible plastic and paper products, including rollstock, bags and pouches, coextruded films, shrink films, coated substrates and labels from its 21 production facilities worldwide, namely in the Americas, the United Kingdom and Australasia.
Isabelle Marcoux, Chair of the Board of Transcontinental Inc, said, ” 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.”
François Olivier, President and Chief Executive Officer of TC Transcontinental, commented, “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 and opens up new and attractive flexible packaging end markets such as agriculture, beverage and protein.”
Craig Reese, Chief Executive Officer of Coveris Americas, said: “Today marks an exciting milestone for Coveris Americas as we join TC Transcontinental that shares our passion for growth.”