pcNewsWire – Intertape Polymer Group Inc. (TSX: ITP) has entered into an agreement to acquire substantially all of the assets of Canadian Technical Tape Ltd., dba Cantech, a supplier of industrial and specialty tapes based in Montreal for US $63 million.
In conjunction with the acquisition of Cantech, IPG also announced a US $150 million increase in the borrowing limit of its existing US $300 million revolving credit facility, bringing the facility’s credit limit to US $450 million.
Intertape Polymer Group (IPG®) Enters Agreement to Acquire Cantech® and Increases Borrowing Capacity by $150 million
IPG® announces investment intended to broaden its tape-making capabilities in North America, and strengthens its borrowing capacity to facilitate current and future expansion projects
MONTREAL, QUEBEC and SARASOTA, FLORIDA, June 12, 2017 – Intertape Polymer Group Inc. (TSX:ITP) (“IPG” or “the Company”), a leading manufacturer of packaging products and machinery, today announced an agreement to acquire substantially all of the assets of Canadian Technical Tape Ltd. (d/b/a “Cantech”), a privately-owned North American supplier of industrial and specialty tapes based in Montreal for an aggregate purchase price of approximately $63 million, and the concurrent increase in the borrowing limit of IPG’s revolving credit facility from $300 million to $450 million. All amounts in this press release are denominated in US dollars unless otherwise indicated.
The Cantech acquisition will further enhance and extend the Company’s product offering, and provide additional distribution channels for IPG products in Canada, the US, and Europe. Cantech unaudited revenues for the twelve months ended March 31, 2017 are estimated at $61 million. The purchase price will be financed with funds available under IPG’s revolving credit facility as amended and discussed further below. The transaction is expected to close in the third quarter of 2017. The completion of this transaction is subject to customary conditions.
In conjunction with the acquisition of Cantech, IPG also announced a $150 million increase in the borrowing limit of its existing $300 million revolving credit facility, bringing the facility’s credit limit to $450 million. The amended credit agreement will continue to include an incremental accordion feature of $150 million, enabling the Company to further increase the credit limit of this facility if needed, subject to the credit agreement’s existing terms and lender approval. The Company expects to use the additional credit primarily to finance the Cantech acquisition as well as its continued expansion through other possible acquisitions and capital expenditures.
“We believe that Cantech represents a strong strategic fit with our existing product portfolio and operations. This acquisition should significantly reinforce our presence in our existing tape product lines and customer channels such as the building and construction and retail segments as well as provide access to new business segments. The Cantech team has impressed us with their achievements in the industry and we are proud to welcome them to our team at IPG,” said Greg Yull, IPG’s President and CEO.
Cantech is based in Montreal, has approximately 250 full-time employees, and is a leading manufacturer of industrial and specialty tapes. Cantech services the Canadian, US, and European markets with pressure-sensitive adhesive tape to industrial, construction, and retail markets. It has three manufacturing facilities within North America located in Montreal, QC, Cornwall, ON and Johnson City, TN. For more information, visit www.cantech.com.
Intertape Polymer Group Inc. is a recognized leader in the development, manufacture and sale of a variety of paper and film based pressure-sensitive and water-activated tapes, polyethylene and specialized polyolefin films, woven coated fabrics and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota, Florida, the Company employs approximately 2,200 employees with operations in 17 locations, including 11 manufacturing facilities in North America and one in each of Europe and Asia. For more information about IPG, visit www.itape.com.
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