Transcontinental Inc. has announced today, April 3 of the acquisition of Coveris Americas in a press conference held in Montreal.
Coveris Americas is a top ten converter of flexible packaging and other value-added products in North America based on revenues for its fiscal year ending in December 2017.
Coveris is headquartered in Chicago, Illinois and it manufactures a variety of flexible plastic and paper products, including rollstock, bags and pouches, coextruded films, shrink films, coated substrates and labels.
“The announcement made is a turning point,” says Isabelle Marcoux, chair of the board of Transcontinental, Inc., during the press conference. “This transaction not only confirms our turn to soft packaging, but ensures profitable long-term growth for us.”
Earnings for the next year are said to go up by $3.3 billion and soft packaging will become the most substantial for Transcontinental, president and CEO François Olivier confirms.
“With the acquisition of Coveris, we are adding $1 billion in sales figures and 21 plants, with a new substantial number of 28 plants,” Olivier says.
Coveris Americas currently has 3,100 employees, mostly located in America and Transcontinental welcomes them with open arms.
The acquisition is expected to be completed in the third quarter of TC Transcontinental’s fiscal year 2018.