Intertape Polymer buys majority stake in stretch film maker Powerbrand
Tape and film manufacturer Intertape Polymer Group (IPG) is acquiring a 74% ownership stake in Powerband Industries Private Limited, a global supplier of acrylic adhesive-based carton sealing tapes and stretch films located in Daman, India.
The purchase price is approximately US$42 million.
The remaining 26% of Powerbrand will continue to be held by the Desai family, which founded the company in 1994.
In a statement, IPG said the deal is designed to further extend “its product offering and global presence in the rapidly growing world packaging market.” “We believe that it is critical to IPG’s growth that we expand from being a primarily North American producer to becoming a greater participant in the global market,” said Greg Yull, IPG’s president and CEO. “This transaction materially furthers IPG’s strategy to expand globally due, in part, to Powerband’s presence in virtually every significant global market, as well as providing IPG with the benefit of access to a low cost and high growth jurisdiction.”
Rajan Desai, the current managing director and founder of Powerband, will continue to manage Powerband’s operations and remain a significant shareholder. The business will remain headquartered in Daman, India.
IPG has corporate headquarters in Montreal, and executive headquarters in Sarasota, Fla. The company employs approximately 2,000 employees with operations in 17 locations, including 12 manufacturing facilities in North America and one in Europe.