Transcontinental Acquires Coveris Americas

MONTREAL, QC, CANADA | Transcontinental Inc. has entered into a definitive agreement to acquire the business of Coveris Americas, a business held by Coveris Holdings, a portfolio company of Sun Capital Partners. The purchase price is US$1.32 billion, subject to customary closing adjustments. Coveris Americas is said to be one of the top ten converters of flexible packaging and other value-added products in North America based on revenues for its fiscal year ended December 31, 2017. Headquartered in Chicago, IL, Coveris manufactures a variety of flexible plastic and paper products, including rollstock, bags and pouches, coextruded films, shrink films, coated substrates, and labels. As of December 31, 2017, Coveris Americas operated 21 production facilities worldwide, namely in the Americas, the UK, and Australasia. It has more than 3,100 employees, the majority of whom are located in the Americas. For its fiscal year ended December 31, 2017, Coveris Americas generated US$966 million in revenues and US$128 million in adjusted EBITDA.

"[This] announcement marks a turning point in TC Transcontinental’s 42-year history,” says Isabelle Marcoux, chair of the board of Transcontinental Inc. “This transaction crystallizes our strategic shift toward flexible packaging and solidifies our commitment to profitable growth. We are convinced that this transformational acquisition will be a driver in the creation of long-term value for all of our stakeholders. It is with pride that we begin the next chapter of our successful journey with Coveris Americas, its employees and customers, building on our values of respect, teamwork, performance, and innovation."

Adds François Olivier, president and CEO of TC Transcontinental, "We are thrilled to announce such a game-changing transaction for TC Transcontinental and to bring our vision of becoming a North American leader in flexible packaging to life. The acquisition of Coveris Americas adds significant depth and scale to our existing platform, with flexible packaging operations now expected to be our largest division in terms of TC Transcontinental's pro forma revenues based on its fiscal year 2017. This transaction complements and bolsters our existing product offering in several flexible packaging end markets including dairy, pet food and consumer products. Additionally, it allows us to enter new and attractive flexible packaging end markets such as agriculture, beverage, and protein. We are looking forward to building on our combined strengths and to continue working with Coveris Americas’ loyal customers, many of whom are market leaders. We are also eager to welcome Coveris Americas’ talented employees who will bring their leading-edge expertise to TC Transcontinental."

Craig Reese, CEO of Coveris Americas, says, "Today marks an exciting milestone for Coveris Americas as we join TC Transcontinental, a company that shares our passion for growth through innovation, service, and quality."

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