Canada’s Transcontinental buys US flexible packaging firm for $133-million
Media printing mogul Transcontinental enters into flexible packaging segment with purchase of Capri Packaging in Missouri.
March 11, 2014
by Canadian Packaging Staff
MONTREAL—Stop the presses—no, not really—but Montreal’s Transcontinental Inc.—a media printing giant—has thrown its hat into the proverbial ring, entering the flexible packaging market with its purchase of the Missouri-based Capri Packaging Inc. in a US$133-million deal.
While not finalized, the deal has Transcontinental purchasing Capri from Schreiber Foods, Inc., an employee-owned dairy company. The deal includes two production facilities in Clinton, Mo.
“This acquisition … is part of our strategy to ensure our future growth path through diversification,” says Transcontinental president and chief executive officer Francois Olivier.
“Over the past year we evaluated various industries where we could leverage our manufacturing competency, a great success for us in the past. The printed flexible packaging industry was rapidly identified as a natural fit given that the production process is very similar to Transcontinental’s printing operations and the market offers many opportunities for growth,” he continues.
As part of the purchase, the two companies agreed to a 10-year deal where Capri will continue to supply printed flexible packaging to Schreiber.
Capri employs roughly 200 people at its two Missouri facilities, and generates approximately US$72-million in annual revenues.
For information on Transcontinental, visit www.tctranscontinental.com/en/.