September 2, 2015 By PrintAction Staff
TC Transcontinental Inc. entered into a definitive agreement to acquire Ultra Flex Packaging Corp., a supplier of flexible packaging, located in Brooklyn, New York. The acquisition is for US$80 million to be paid in cash at closing, plus an additional undisclosed payment if certain financial targets are hit.
Ultra Flex Packaging employs close to 300 people and generated US$72 million in annual revenues and US$12 million in operating income before amortization in its last fiscal year. The transaction is subject to regulatory approval in the United States and is expected to close before the end of our 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,” said François Olivier, President and CEO of TC Transcontinental. “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.”
Olivier explains, when the acquisition is completed, TC Transcontinental expects to report annualized revenues of over US$150 million in its packaging division.
The three co-owners of Ultra Flex Packaging have agreed to stay for the acquisition transition. “We are very pleased to join TC Transcontinental,” said Eli Blatt, founder and CEO of Ultra Flex Packaging. “While we bring to the table industry knowledge, a highly skilled workforce and a national sales team, TC Transcontinental brings strong leadership, financial means and decades of manufacturing experience.”
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