Canadian packaging systems manufacturer Intertape Polymer Group (IPG) has signed an agreement to acquire all of the outstanding equity value in Polyair Inter Pack for $146m.

The transaction is expected to bolster IPG’s product bundle with a complementary line of protective packaging products, including bubble cushioning, foam, mailers and air pillow systems.

IPG expects to harness cross-selling opportunities offered by the enhanced product bundle as both companies sell products through similar distribution and end-user customer channels.

The acquisition will also give IPG access to Polyair’s seven manufacturing facilities and a distribution centre in North America, adding to its existing network of 13 manufacturing facilities in North America, two in Asia and one in Europe.

IPG will have the opportunity to further leverage its e-commerce segment to drive growth.

“We consider protective packaging an important driver of our vision and we expect this acquisition to create value for our shareholders.”

The company will also have access to a greater customer base in multiple geographic markets.

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IPG president and CEO Greg Yull said: “We believe this acquisition demonstrates our commitment to deliver on our strategic growth targets and become a global leader in packaging and protective solutions.

“We consider protective packaging an important driver of our vision and we expect this acquisition to create value for our shareholders.

“We believe significant opportunities exist for us to expand our existing relationships with a protective-solutions offering, especially in the e-commerce segment, and win new customers with a broader and stronger product bundle.”

Once the combination is completed, IPG will have a comprehensive offering of packaging and protective solutions.

Prior to this transaction, the company completed five strategic deals in the past four years.

The acquisition is conditional on customary closing conditions, including receipt of antitrust regulatory approval, and is scheduled to be completed in the third quarter of this year.