Intertape Polymer Group (IPG), a Canada-based packaging products and systems company, acquired Polyair Inter Pack, supplier of protective packaging, for US$ 146 Mn, according to a report published on August 8, 2018.
The acquisition was after the signing of original acquisition agreement by the companies in July. Polyair Inter Pack operates its business through seven manufacturing facilities, which includes production of protective packaging products such as bubble cushioning, foam, mailers, and air pillow systems, with two headquarters in Toronto, Ontario and Chicago, Illinois. The company currently employs around 600 employees across North America. Greg Yull, IPG President and CEO said, “The addition of Polyair’s protective packaging offering is a strategic acquisition that expands our offering into a new product line thereby strengthening our overall product bundle.”
Moreover, complementary product offering and established customer base of Polyair will provide a two-faceted approach to IPG for cross-selling opportunities. Another reason for this acquisition is the demand for protective packaging that is expected to increase in the near future, as the e-commerce market continues to experience out-sized growth.
Intertape will finance the transaction through funds available under its revolving US$ 600 Mn credit facility. Intertape is expecting around US$ 133 Mn in revenues from Polyair for 12 months ending 31 December this year after the transaction. Intertape manufactures and markets a range of paper-based and film-based pressure sensitive and water-activated tapes, polyethylene and specialized polyolefin films, protective packaging, woven coated fabrics and complementary packaging systems for industrial and retail use.
Intertape operates its business from its headquarters in Montreal, Quebec and Sarasota, Florida, and has around 3,400 employees. It operates 20 manufacturing facilities in North America, two in Asia, and one in Europe as well as a presence in 27 locations.