Transcontinental to buy plastics packager Coveris for $1.7 billion
The purchase is the latest step in Montreal-based Transcontinental’s expansion into the plastics packaging business.
In a bid to expand its plastics packaging business, Montreal-based printing and packaging supplier Transcontinental Inc. is buying plastics packager Coveris Americas for $1.7 billion.
Headquartered in Chicago, Coveris Americas makes rollstock, bags, pouches, coextruded films, shrink films, coated substrates, labels and related flexible packaging. The company operates 21 production facilities in the Americas, the U.K., and Australasia.
As part of the deal, Transcontinental will take control of the 21 production facilities that make rollstock, bags and pouches, shrink films and labels, among others.
“This transaction crystallizes our strategic shift toward flexible packaging and solidifies our commitment to profitable growth,” Transcontinental Chairwoman Isabelle Marcoux said in a news release.
The deal is expected to close in the third quarter of 2018.
The Coveris acquisition is the latest in an extremely busy few years for Transcontinental. Less than three weeks ago, Transcontinental bought Multifilm Packaging Corp. of Elgin, Ill. Earlier in 2017, it bought Quebec-based flexible packaging supplier Les Industries Flexipak Inc.; and in October 2016 Transcontinental bought Flexstar Packaging Inc., a flexible packager based in the Vancouver suburb of Richmond, B.C. In total, Transcontinental has made seven flexible packaging acquisitions since it entered the field in 2014.