Transcontinental: Acquisition of US packaging manufacturer Coveris Americas

The Canadian Transcontinental Group acquires Coveris Americas, a US packaging manufacturer.

In a press release, Transcontinental announced the conclusion of an agreement with its parent company Coveris Holdings. The total financial volume of the transaction is USD 1.32 billion. The acquisition is subject to regulatory approval and is expected to be completed by the middle of this year.

Coveris Americas mainly produces flexible plastic packaging and has 21 production sites in the USA, Canada, Ecuador, Guatemala, Mexico, Great Britain, New Zealand and China with a total of more than 3,100 employees. In fiscal 2017, the Chicago-based company generated EBITDA of USD 128 million from sales of USD 966 million.

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Transcontinental CEO François Olivier said in the broadcast: "We are delighted to announce this groundbreaking acquisition for Transcontinental. We will now realize our vision of becoming the leading supplier of flexible packaging in North America. With the acquisition of Coveris Americas, we are significantly expanding our existing capacity in every respect, making flexible packaging Transcontinental's largest division in terms of pro forma sales in 2017. The transaction complements and strengthens our range of flexible packaging in various markets including dairy, pet food and consumer products. We are also entering new and attractive markets such as agriculture, beverages and proteins."

Following the sale of Coveris Americas, Coveris Holdings will focus on the production of solid packaging and the markets in Europe and the Middle East. The businesses remaining under the holding company's umbrella generated total sales of approximately USD 1.4 billion in 2017, posting EBITDA of USD 132 million. Coveris was created five years ago through the merger of the packaging manufacturers Exopack, Britton Group, Kobusch, PACCOR and Paragon Print & Packaging and is controlled by the investment company Sun Capital Partners.

The Montreal-based Transcontinental Group is active not only in the packaging industry but also in the printing industry. With a total of approximately 8,000 employees in Canada and the USA, the Group generated total sales of CAD 2.007 billion (EUR 1.262 billion) in fiscal 2016/2017, generating an operating profit of CAD 302 million (EUR 190 million) and a net profit of CAD 211 million (EUR 133 million).

More information: www.coveris.com

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