Intertape Polymer Group Inc. today announced it has acquired 100 per cent of the outstanding equity value in Polyair Inter Pack Inc. for total cash consideration of approximately US $146 million.
Polyair is a player in the protective packaging business with seven manufacturing facilities and a distribution center in North America.
“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,” said Greg Yull, President and CEO of IPG. “Polyair is a leader in protective packaging solutions with products and customers that complement our existing portfolio. Polyair has built a strong brand with its customer base through its commitment to operational excellence and low-cost manufacturing. 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.”
Polyair’s primary products consist of bubble cushioning, foam, mailers and air pillow systems, which are complementary to IPG’s existing product offering.
According to a company press release, with the diverse set of customers between IPG and Polyair, this enhanced product bundle should facilitate significant cross-selling opportunities as both companies currently sell products through similar distribution and end user customer channels.
Specifically, both companies have been focused on the e-commerce segment as a growth engine, which is expected to be leveraged even further with this combination.
“We believe IPG shares our vision of customer service, product breadth and quality as well as operational excellence in low-cost manufacturing. Joining them should offer us a platform for growth and a scale that will benefit our customers and employees,” said Gary Tessitore, CEO of Polyair. “We have built a business that is recognized by our customers for quality products and reliable service and we expect to continue to deliver on both those fronts as part of the IPG family.”
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