MONTREAL—Transcontinental Inc. has announced it has entered into a agreement to acquire Ultra Flex Packaging Corp., a supplier of flexible packaging, located in Brooklyn, New York, for US$80 million. The deal will consist of cash as well as additional considerations subject to pre-established financial targets.
Canada’s largest printer, with operations in print and digital media as well as flexible packaging and publishing said Ultra Flex employs close to 300 people, generated $72 million in annual revenues and $12 million in operating income in its last fiscal year.
“This acquisition builds on our Capri Packaging acquisition last year and is part of our strategy to ensure our future growth path through diversification,” François Olivier, president and CEO of TC Transcontinental, said. “This latest acquisition expands our footprint in the U.S., gives us access to a national sales force, to new vertical markets and manufacturing capabilities. Once the acquisition has been completed, we will report annualized revenues of over US$150 million in our packaging division.”
“The three co-owners of Ultra Flex Packaging have agreed to stay on to ensure a smooth transition, provide continuity and support future growth. We are very optimistic of our growth prospects in this area and look forward to welcoming our new employees soon,” Olivier added.
The transaction is subject to regulatory approval in the U.S. and is expected to close before the end of Transcontinental’s fiscal year.