Intertape Polymer acquires outstanding Powerband interest
Canadian PlasticsCanadian Plastics Packaging
Montreal’s Intertape Polymer Group Inc. is now the sole shareholder of India-based packaging tape maker Powerband Industries Private Ltd. by acquiring the outstanding 26 per cent interest in the company for US$9.9 million.
Montreal’s Intertape Polymer Group Inc. (IPG) is now the sole shareholder of India-based packaging tape maker Powerband Industries Private Ltd. by acquiring the outstanding 26 per cent interest in the company for US$9.9 million.
IPG first acquired a controlling interest in Powerband in 2016, and now owns all of the issued and outstanding common shares of Powerband after this transaction, which is subject to regulatory approval in India. IPG had already transitioned all management responsibilities to an IPG-appointed management team earlier this year so this transaction will not have any impact on day-to-day operations.
“By exercising our option, we have simplified the governance structure of the Powerband subsidiary. Most importantly, the transaction provides us with a 100 per cent interest in the cash flows from the business,” said Greg Yull, president and CEO of IPG. “Acquiring a controlling interest in Powerband in 2016 provided us with additional capacity for acrylic carton-sealing tapes in a low-cost manufacturing region with the goal of exporting these competitively-priced tape products to North America and Europe. Since that time, having this overseas asset has enabled us to expand our market share in North America and negotiate better terms on raw materials for our US production of similar packaging tapes.”
Powerband has one operating facility in Daman, India and one facility under construction in Dahej, India. The company has approximately 200 full-time employees.
With dual headquarters in Montreal and Sarasota, Fla., IPG manufactures a variety of paper- and film-based pressure sensitive and water-activated tapes, polyethylene and specialized polyolefin films, protective packaging, woven coated fabrics and complementary packaging systems for industrial and retail use.