Transcontinental acquires U.S.-based flexible packaging supplier for $80 million
Canadian PlasticsPackaging Transcontinental Inc.
Canadian printing giant expands U.S. footprint and packaging capacity with deal.
In a bid to expand the reach of its American business, Canadian printing giant Transcontinental Inc. has entered into an agreement to acquire Ultra Flex Packaging Corp., a U.S.-based supplier of flexible packaging, for US$80 million.
Headquartered in Brooklyn, N.Y., Ultra Flex employs close to 300 workers and generated US$72 million in annual revenues and US$12 million in operating income in its last fiscal year.
In a statement, Transcontinental CEO Francois Olivier said the acquisition builds on last year’s acquisition of Capri Packaging in Clinton, Missouri, which does plastic packaging for food products such as cheese and fresh pasta.
Ultra Flex’s three co-owners will remain with the company to support its growth.
The transaction is subject to regulatory approval in the U.S. and is expected to close before the end of Transcontinental’s fiscal year.
Montreal-based Transcontinental is said to be Canada’s largest printer, with operations in print and digital media as well as flexible packaging and publishing, and more than $2 billion of annual revenues.