Business News
Transcontinental Inc. Completes the Capri Packaging Acquisition
Tuesday 06. May 2014 - Transcontinental Inc. (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D) is pleased to announce that it has completed the transaction for the acquisition of the assets of Capri Packaging, a producer of flexible packaging, operating two facilities located in Clinton, Missouri.
The acquisition will add about US$72 million to TC Transcontinental’s revenues. As part of the transaction, the seller, Schreiber Foods, Inc. has signed a 10-year agreement to secure Capri Packaging as a strategic supplier of flexible packaging, which represents about 75% of Capri’s total revenues.
“The acquisition of Capri Packaging is an important milestone in our development and is an integral part of our strategy to ensure TC Transcontinental’s profitable growth through prudent diversification. It represents a strategic move for the Corporation into a new promising area, flexible packaging, where we can significantly leverage our manufacturing competencies. We are enthusiastic about the future prospects that lie ahead for TC Transcontinental. We warmly welcome all Capri Packaging employees into our organization,” said François Olivier, President and Chief Executive Officer of Transcontinental Inc.
“In order to efficiently develop, run and grow our manufacturing operations, we have adapted our organizational structure. Mr. Brian Reid is appointed President of the sector that now comprises two divisions: TC Transcontinental Printing and TC Transcontinental Packaging. Drawing on his extensive manufacturing experience, Brian will also oversee the development of our new packaging operations as the Divisional President of TC Transcontinental Packaging, while continuing to oversee the strategic orientations of the Printing division. To support him in his new role, Jacques Grégoire is appointed Divisional President of TC Transcontinental Printing. Jacques is a seasoned manager with over 27 years of leadership experience in key executive roles within TC Transcontinental Printing. Until recently, Jacques was Senior Vice President of the Magazine, Book and Catalogue Group. I wish them both much success in their new roles,” noted Mr. Olivier.