Transcontinental Diversifies: Capri Deal Opens New Market
MONTREAL—Transcontinental Inc. has acquired the assets of Capri Packaging, a supplier of printed flexible packaging, 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 headquartered in Green Bay, WI.
TC Transcontinental will be acquiring Capri's two facilities in Clinton, MO, which employ 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 Francois Olivier, president and CEO of Transcontinental Inc.
"It is part of our strategy to ensure our future growth path through diversification. 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," he added.
"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."