Intertape Polymer Group manufactures and sells paper and film-based pressure-sensitive and water-activated tapes, stretch and shrink films, protective packaging products
IPG develops, manufactures and sells products for industrial and retail applications. (Credit: delphinmedia/Pixabay)
An affiliate of investment firm Clearlake Capital has agreed to acquire packaging products supplier Intertape Polymer Group (IPG) in an all-cash deal worth around $2.6bn, including net debt.
Based in Montreal, Quebec and Sarasota, Florida, IPG develops, manufactures and sells a wide range of products for industrial and retail applications.
The products include paper and film-based pressure-sensitive and water-activated tapes, stretch and shrink films, protective packaging, and packaging equipment.
IPG has about 4,100 employees with operations in 34 locations, including 22 production plants in North America, five in Asia and two in Europe.
Under the terms of the deal, Clearlake Capital will buy the outstanding shares of IPG for C$40.50 per share in cash, representing a premium of about 82% to the closing price of IPG common shares on the Toronto Stock Exchange on 7 March 2022.
Once the transaction is closed, IPG will become a privately held company.
Intertape Polymer Group president and CEO Greg Yull said: “We believe this transaction is a great next step in the evolution of our business as Clearlake has strong industry knowledge in the protective packaging and e-commerce ecosystems.
“Clearlake provides us the operational and financial resources to accelerate our acquisition strategy, as well as organic growth opportunities such as investing in product innovation, sustainability, and market expansion.
Yull added: “Clearlake’s investment reflects its confidence in our people, processes, and strategy, and this transaction will advance our vision of becoming a global leader in packaging and protective solutions.
“We believe this all-cash transaction represents an attractive return and provides certainty for our shareholder base.”
The transaction is expected to close in the third quarter of 2022, subject to customary closing conditions, including receipt of shareholder, regulatory and court approvals.
Morgan Stanley is acting as a financial advisor, and Weiss, Rifkind, Wharton & Garrison and Fasken Martineau DuMoulin are serving as legal advisors to IPG on the transaction.
Goldman Sachs is serving as the lead financial advisor to Clearlake. Also, Credit Suisse and Deutsche Bank Securities are serving as financial advisors and Kirkland & Ellis and Stikeman Elliott are acting as legal advisors to Clearlake on the deal.
Credit Suisse, Deutsche Bank Securities and Wells Fargo are providing funding to support the acquisition.