Packaging manufacturer Coveris has secured all regulatory approvals needed to complete the divestment of its Americas packaging business to Transcontinental (TC Transcontinental).
The company, which is planning to complete the sale on 1 May 2018, secured consent from the lenders under its existing credit agreement dated 8 November 2013, which enable full repayment of its USD term loan, ABL facilities and 7?% senior notes due 2019, after the completion of the deal.
Coveris intends to use the proceeds from the sale to repay certain of its existing indebtedness.
Once the deal concludes, Coveris will have manufacturing facilities in 14 countries, 44 strategically located facilities and over 8,000 employees.
Earlier this month, Transcontinental has agreed to acquire Coveris’ Americas packaging business in a deal worth $1.320bn.
The acquired business is expected to help Transcontinental to significantly diversify its business into flexible packaging and enhance film manufacturing capabilities.
Coveris is not selling its operations, including Rigid, EMEA, and UK Food & Consumer businesses.
Coveris Americas is a subsidiary of Sun Capital Partners portfolio firm Coveris, and is involved in the manufacturing of several flexible plastic and paper products, including rollstock, bags and pouches, coextruded films, shrink films, coated substrates and labels.
In March this year, TC Transcontinental also acquired US flexible packaging supplier Multifilm Packaging for an undisclosed sum.
Based in Elgin of Illinois, Multifilm provides flexible packaging solutions for the food, beverage, and confectionery industries.
The company is specialized in providing piece-wraps and high-barrier laminates for the confectionery, snacks and dry foods markets.
In November 2017, TC Transcontinental acquired Canadian flexible packaging supplier Les Industries Flexipak, which provides a range of flexible packaging products for consumer goods companies, food processors and retailers across several markets including frozen fruits and vegetables, seafood, snacks, grains, nuts and beverage (shrink films).