Intertape Polymer Group Inc. (IPG) today announced it has acquired substantially all of the operating assets of Maiweave LLC for total cash consideration of approximately US$21 million, subject to certain post-closing adjustments.
Maiweave is a private company based in Springfield, Ohio and an integrated U.S. manufacturer of engineered coated polyolefin fabrics that employs approximately 75 team-members at two manufacturing facilities strategically located to service key U.S. markets.
“This acquisition is expected to provide us with an opportunity to consolidate a U.S.-based engineered coated products manufacturer and expand the scale of our woven products offering,” says Greg Yull, president and CEO of IPG. “Maiweave has a strong, established customer base, long-term and dedicated employees, and locations in the Midwest and in the Southeast.”
Its products are used in applications such as grain and salt pile covers, pit and pond liners, shelter fabrics, outdoor media, and lumber mill packaging.
The Maiweave acquisition is the seventh strategic transaction that IPG has completed in the past four years.
“We believe this acquisition will enhance our ability to service our U.S. markets such as the strengthening building and construction, oil and gas, and outdoor media industries,” says Yull. “It also provides us an opportunity to backward-integrate manufacturing from our new Capstone facility, which is nearing completion, as an alternative to third-party product that Maiweave is currently procuring from Asia.”
This acquisition strengthens IPG’s existing product bundle, provides additional scale to support growing demand in woven products, and adds capacity that is in close proximity to growing markets.
IPG’s woven products represent approximately 14 per cent of the company’s expected pro forma revenue in 2018 after adjusting for the expected impact of this acquisition. Maiweave is also expected to provide IPG with the ability to leverage its new woven manufacturing facility in India (Capstone), which remains on budget and on time for commercial operations starting in the first half of 2019.
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