Intertape Polymer signs agreement to acquire Nortech Packaging
Chicago-based Nortech manufactures and services automated packaging machines under the Nortech Packaging and Tishma Technologies brands.
Montreal-based packaging systems supplier Intertape Polymer Group Inc. (IPG) is acquiring the operating assets of Nortech Packaging for approximately US$36.5 million.
Based in Chicago, Ill., Nortech specialises in manufacturing, assembling, and servicing automated packaging machines under the Nortech Packaging and Tishma Technologies brands.
In a Feb. 10 statement, IPG said the acquisition “will expand [its] product bundle into technologies that are increasingly critical to automation in packaging.”
“Automation system design and service are key capabilities in growing markets like e-commerce,” the statement said. “With an installed fleet of more than 400 machines, the acquisition provides IPG with opportunities to supply consumables to the existing fleet, as well as deploy system-selling for new customers combining machines with ongoing consumables.”
In addition, the deal will add engineering automation and integrated robotic design talent to IPG’s existing engineering and design teams.
“We believe this acquisition will provide us with the opportunity to move upstream in our target customer’s production process with an expanded product bundle and a continuous supply of consumables,” said Greg Yull, president and CEO of IPG. “We have laid out a clear strategy to further strengthen our product bundle and continue to grow with our e-commerce customers as they expand around the globe. This acquisition delivers on both fronts. We remain committed to paying down debt moving forward as our cash flows improve with contributions from our recent capex investments and our earlier acquisitions. At the same time, we will continue to be disciplined in our approach to acquisitions that strengthen our product bundle or offer strategic benefit to IPG meeting our customer’s needs.”
The acquisition is expected to close in the first quarter of 2020.
IPG, which has corporate headquarters in Montreal and Sarasota, Fla., develops, manufactures, and sells a variety of paper and film-based pressure-sensitive and water-activated tapes, polyethylene, and specialized polyolefin films, woven coated fabrics, and complementary packaging systems for industrial and retail use.