TC Transcontinental has entered into an agreement to acquire top flexible packaging converter Coveris Americas for $1.32 billion.

Coveris Americas is one of the top 10 converters of flexible packaging and other value-added products in North America based on revenues for its fiscal year that ended December 31, 2017. Headquartered in Chicago, Illinois, Coveris manufactures a variety of flexible plastic and paper products, including rollstock, bags and pouches, co-extruded films, shrink films, coated substrates and labels. As of December 31, 2017, Coveris operated 21 production facilities worldwide, namely in the Americas, the United Kingdom and Australasia. Coveris has over 3,100 employees, the majority of whom are located in the Americas. For its fiscal year ended December 31, 2017, Coveris generated $966 million in revenues and $128 million in Adjusted EBITDA.

"Today's announcement marks a turning point in TC Transcontinental's 42-year history. This transaction crystallizes our strategic shift toward flexible packaging and solidifies our commitment to profitable growth," says Isabelle Marcoux, chair of the board of Transcontinental Inc. "We are convinced that this transformational acquisition will be a driver in the creation of long-term value for all of our stakeholders. It is with pride that we begin the next chapter of our successful journey with Coveris Americas, its employees and customers, building on our values of respect, teamwork, performance and innovation."

Adds François Olivier, president and CEO of TC Transcontinental: "We are thrilled to announce such a game-changing transaction for TC Transcontinental and to bring our vision of becoming a North American leader in flexible packaging to life. 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. This transaction complements and bolsters our existing product offering in several flexible packaging end markets including dairy, pet food and consumer products. Additionally, it allows us to enter new and attractive flexible packaging end markets such as agriculture, beverage and protein. We are looking forward to building on our combined strengths and to continue working with Coveris’ loyal customers, many of whom are market leaders. We are also eager to welcome Coveris’ talented employees who will bring their leading-edge expertise to TC Transcontinental."

Craig Reese, CEO of Coveris Americas, says: "Today marks an exciting milestone for Coveris Americas as we join TC Transcontinental, a company that shares our passion for growth through innovation, service and quality."

The terms of the acquisition have been approved by the boards of directors of both TC Transcontinental and Coveris. The acquisition, which remains subject to certain customary closing conditions and receipt of applicable antitrust approvals, is expected to be completed in the third quarter of TC Transcontinental's fiscal year 2018.


TC Transcontinental