Canadian packaging products and systems company Intertape Polymer Group (IPG) has completed the acquisition of the outstanding equity value in protective packaging supplier Polyair Inter Pack for $146m.
The completion follows signing of original acquisition agreement by the companies last month.
With two headquarters in Toronto, Ontario and Chicago, Illinois, Polyair Inter Pack currently operates seven manufacturing facilities to produce protective packaging products such as bubble cushioning, foam, mailers and air pillow systems.
The company currently employs approximately 600 employees across North America.
IPG president and CEO Greg Yull 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.
“Polyair’s complementary product offering and established customer base provide us a two-faceted approach for cross-selling opportunities.
“In addition, as the e-commerce market continues to experience out-sized growth, we believe protective packaging demand will continue to be a key component of our future growth.”
Intertape will finance the transaction through funds available under its revolving $600m credit facility.
Following the transaction, Intertape expects approximately $133m in revenues from Polyair for 12 months ending 31 December this year.
The company also expects $2m in deal costs and $3m to $4m in integration costs during 2019 and 2020.
Intertape manufactures and markets a range of paper-based and film-based pressure sensitive and water-activated tapes, polyethylene and specialised polyolefin films, protective packaging, woven coated fabrics and complementary packaging systems for industrial and retail use.
The company operates the business from its headquarters in Montreal, Quebec and Sarasota, Florida with approximately 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.