Transcontinental Enters Flexible Packaging Market with Asset Purchase of MO-based Capri Packaging
MONTREAL—March 11, 2014—Transcontinental Inc. announced today that it entered into a definitive agreement under which it agreed to acquire the assets of Capri Packaging, a supplier of printed flexible packaging, located in Clinton, MO, for a purchase price of US$133 million. The transaction is subject to regulatory approval in the United States. Capri Packaging is a division of Schreiber Foods, a US$5 billion employee-owned dairy company, located in Green Bay, WI.
TC Transcontinental will be acquiring two facilities in Clinton, MO, which employs close to 200 people, and generate approximately US$72 million in annual revenues. As part of the transaction, the seller, Schreiber Foods has signed a 10-year agreement to secure Capri Packaging as a strategic supplier of printed flexible packaging, which represents about 75 percent of Capri’s total revenues.
“This acquisition represents an important strategic move for the corporation into a new promising growth area,” said said Francois Olivier, president and CEO of Transcontinental Inc. “It is part of our strategy to ensure our future growth path through diversification. Over the past year we evaluated various industries where we could leverage our manufacturing competency, a great success for us in the past. The printed flexible packaging industry was rapidly identified as a natural fit given that the production process is very similar to TC Transcontinental’s printing operations and the market offers many opportunities for growth. We are very excited to partner with Schreiber Foods for the long term, which will provide us with a recurring revenue stream, and look forward to fostering our relationship over the coming years.”
Mike Haddad, president and CEO of Schreiber Foods, also added: “We are very pleased to enter into a long-term supply agreement with TC Transcontinental. They are an exceptional company that brings world-class printing capabilities, dynamic leadership and decades of experience to the table. And most importantly, TC Transcontinental shares many of the same values and qualities that are core to Schreiber. We look forward to working closely with TC Transcontinental in the months ahead to ensure a smooth transition, while setting the foundation for a long-lasting friendship and partnership.”
About TC Transcontinental
Largest printer and leading provider of media and marketing activation solutions in Canada, TC Transcontinental creates products and services that allow businesses to attract, reach and retain their target customers. The corporation specializes in print and digital media, the production of magazines, newspapers, books and custom content, mass and personalized marketing, interactive and mobile applications, and door-to-door distribution.
Transcontinental Inc. (TSX:TCL.A)(TSX:TCL.B)(TSX:TCL.PR.D), including TC Transcontinental, TC Media and TC Transcontinental Printing, has over 9,000 employees in Canada and the United States, and revenues of C$2.1 billion in 2013.
About Schreiber Foods
Headquartered in Green Bay, WI, Schreiber is the largest employee-owned dairy company in the world, with annual sales of more than US$5 billion. Schreiber sells its products—which include cream cheese, natural cheese, process cheese and yogurt—to leading retailers, restaurants, distributors and food manufacturers around the world. Schreiber has more than 30 manufacturing and distribution facilities globally in the United States, Austria, Brazil, Bulgaria, Czech Republic, Germany, India, Mexico, Portugal and Uruguay.