Transcontinental To Buy Coveris Americas – Quick Facts

Transcontinental Inc. (TCL_A.TO) announced a definitive agreement to acquire the business of Coveris Americas, a business held by Coveris Holdings S.A., a portfolio company of Sun Capital Partners, Inc. The purchase price is $1.32 billion. Headquartered in Chicago, Illinois, Coveris Americas manufactures a variety of flexible plastic and paper products, including rollstock, bags and pouches, coextruded films, shrink films, coated substrates and labels. The acquisition significantly diversifies TC Transcontinental’s business into flexible packaging.

Francois Olivier, CEO of TC Transcontinental, said: “The acquisition of Coveris Americas adds significant depth and scale to our existing platform, with flexible packaging operations now expected to be our largest division in terms of TC Transcontinental’s pro forma revenues based on its fiscal year 2017.”

The company said the transaction is immediately accretive to adjusted net earnings per share and free cash flow per share before cost synergies. The acquisition is expected to be completed in the third quarter of TC Transcontinental’s fiscal 2018.

As of December 31, 2017, Coveris Americas operated 21 production facilities worldwide, namely in the Americas, the United Kingdom and Australasia. Coveris Americas has over 3,100 employees, the majority of whom are located in the Americas. For its fiscal year ended December 31, 2017, Coveris Americas generated $966 million in revenues and $128 million in adjusted EBITDA.

by RTTNews Staff Writer

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