Company also investing $36 million to expand capacity at Canada, U.S. plants
MONTREAL—A Quebec plastics company is extending its reach south of the border.
IPL Inc., a Quebec subsidiary of Ireland-based plastics and environmental service company One51 plc, has signed a deal to buy rigid plastic packaging manufacturer Encore Industries Inc. for $35 million.
IPL said the acquisition will increase its presence in the U.S. and make it the third-largest player in the American plastic injection molded products market. Based Sandusky, Ohio, Encore has plants in Ohio, Georgia and Minnesota.
“The acquisition of Encore is strategic for IPL and, both by the location of its facilities and by the type of products manufactured there”, Luis De Jesus, the company’s president and CEO, said. “Encore will allow us to offer a wider range of products to more customers in more places across North America, while ensuring the long-term future of IPL as a whole.”
The plastics manufacturer is partnering with Caisse de dépôt et placement du Québec and the Fonds de solidarité FTQ on the deal.
Along with the acquisition, IPL and its Dublin-headquartered parent company said they will invest $36 million into expanding production capacity across the U.S. and Canada. It did not release details about what plants will be receiving upgrades, but said the cash injection will accelerate its expansion into new markets in North America.