Printing and media giant Transcontinental Inc. is diversifying its business with the acquisition of a U.S. printed flexible packaging manufacturer.
Montreal-based Transcontinental has struck a deal to acquire Clinton, Mo.-based Capri Packaging for US$133 million from parent Schreiber Foods Inc.
The deal includes a pair of production facilities in Clinton, Mo., according to Transcontinental.
“This acquisition … is part of our strategy to ensure our future growth path through diversification,” Transcontinental president and CEO Francois Olivier said in a statement. “Over the past year we evaluated various industries where we could leverage our manufacturing competency, a great success for us in the past. The printed flexible packaging industry was rapidly identified as a natural fit given that the production process is very similar to Transcontinental’s printing operations and the market offers many opportunities for growth.”
As part of the purchase, the two companies agreed to a 10-year deal where Capri will continue to supply printed flexible packaging to Schreiber.
Capri employs roughly 200 people at its two Missouri facilities, and generates approximately US$72 million in annual revenues.