Transcontinental Inc. acquires Ultra Flex Packaging
Acquisition will double Transcontinental's packaging revenues.
acquisition of flexible packaging company
Ultra Flex Packaging Corp.
MONTREAL—Transcontinental Inc. announced on September 1, 2015, that it has entered into a definitive agreement to acquire Ultra Flex Packaging Corp., a supplier of flexible packaging, located in Brooklyn, NY, for US$80 million to be paid in cash at closing plus an additional consideration payable subject to attaining pre-established financial targets.
Ultra Flex Packaging employs close to 300 people and generated US$72 million in annual revenues and US$12 million in operating income before amortization in its last fiscal year. The transaction is subject to regulatory approval in the United States and is expected to close before the end of our fiscal year.
“This acquisition builds on our Capri Packaging acquisition last year and is part of our strategy to ensure our future growth path through diversification,” says TC Transcontinental president and chief executive officer François Olivier. “This latest acquisition expands our footprint in the U.S., gives us access to a national sales force, to new vertical markets and manufacturing capabilities. Once the acquisition has been completed, we will report annualized revenues of over US$150 million in our packaging division. The three co-owners of Ultra Flex Packaging have agreed to stay on to ensure a smooth transition, provide continuity and support future growth. We are very optimistic of our growth prospects in this area and look forward to welcoming our new employees soon.”
Adds Ultra Flex Packaging founder and chief executive officer Eli Blatt: “We are very pleased to join TC Transcontinental. While we bring to the table industry knowledge, a highly skilled workforce and a national sales team, TC Transcontinental brings strong leadership, financial means and decades of manufacturing experience. Together we have what it takes to build the foundation for future growth.”
About TC Transcontinental
Canada’s largest printer, with operations in print and digital media, flexible packaging and publishing, TC Transcontinental’s mission is to create products and services that allow businesses to attract, reach and retain their target customers.
Respect, teamwork, performance and innovation are strong values held by the Corporation and its commitment to all stakeholders is to pursue its business and philanthropic activities in a responsible manner.
Transcontinental Inc., known as TC Transcontinental, has over 8,000 employees in Canada and the U.S., and revenues of C$2.1 billion in 2014. Company information can be found at www.tc.tc.