Transcontinental Inc said on Monday it would buy the U.S. unit of plastics packager Coveris Holdings S.A for $1.70 billion as the Canadian printing company shifts its focus to a lucrative flexible packaging business.<\/p>\n
As part of the deal, Transcontinental will take control of privately held Coveris Americas\u2019s 21 production facilities that make rollstock, bags and pouches, shrink films and labels, among others.<\/p>\n
The plastics and packaging industry has been consolidating fast to keep up with the rising demand from ecommerce and automotive sectors.<\/p>\n
In February, LyondellBasell Industries NV bought smaller rival A. Schulman Inc for US$2.25 billion, doubling the size of its business that supplies plastic compounds to the packaging, electronics and building markets.<\/p>\n
Transcontinental said it expects the acquisition to save costs of about US$20 million over the next two years and will use both cash in hand and debt for the deal.<\/p>\n
Transcontinental is expected to close the deal in the third quarter of 2018.<\/p>\n
BMO Capital Markets and J.P. Morgan Securities LLC acted as financial advisers to Transcontinental on the deal.<\/p>\n
\u00a9 Thomson Reuters 2018<\/p>\n","protected":false},"excerpt":{"rendered":"
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