IPL buys California-based molder Macro Plastics
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The US$150 million purchase is designed to expand IPL’s footprint in the U.S. and South America.
In a bid to expand its footprint in the U.S. market and the growing South American market, Quebec-based injection molder IPL Inc. has purchased Macro Plastics Inc., a California-based manufacturer of rigid plastic bulk bins, for US$150 million.
“Macro is the largest manufacturer of rigid plastic bulk bins worldwide and is a market leader in providing value-added rigid plastic bulk packaging solutions to the agricultural and automotive sectors, and operates some of the largest bulk machines in North America,” IPL said in a statement. “Macro offers a significant footprint for IPL’s expansion in the strategically important U.S. market and the growing South American market…and its product portfolio is complementary to IPL’s existing business. In particular, Macro provides IPL with a significant presence on the US West Coast, a key growth target of IPL.”
Headquartered in Fairfield, Calif., Macro operates three manufacturing facilities in California, Washington, and Kentucky with dedicated design and testing capabilities together with an established international sales network.
“This transformational acquisition gives us our first significant presence on the west coast of America, providing us with a leading position in a number of growing market segments,” said IPL president and CEO Luis de Jesus. “The acquisition also expands our geographic reach, product portfolio and customer base across the growing North and South-American markets.”
The acquisition is being funded through a combination of IPL senior bank facilities and additional equity from the IPL shareholders One51 plc, Caisse de dépôt et placement du Quebec , and Fonds de solidarite FTQ.
The acquisition is expected to close by mid-June 2017.
Headquartered in Saint-Damien, Que., IPL makes injection molded products for the food and bulk packaging, environment and material handling sectors in Canada and the U.S. IPL operates from six manufacturing plants located in Saint Damien, Edmundston, N.B., and the U.S. states of Missouri, Ohio, Georgia, and Minnesota.