Non-public fairness agency Clearlake Capital Group LP has signed a deal to purchase Intertape Polymer Group Inc. in a deal valued at US$2.6-billion, together with debt.
Below the settlement that can see IPG develop into a privately held firm, Clearlake can pay $40.50 a share in money, representing an 82-per-cent premium to its final closing value.
Intertape shares rose $17.02, or 76.4 per cent, to $39.30 in Tuesday afternoon buying and selling on the Toronto Inventory Alternate.
IPG chief government Greg Yull says Clearlake will present the operational and monetary assets to speed up the corporate’s acquisition technique, in addition to natural development alternatives.
“We consider this transaction is a superb subsequent step within the evolution of our enterprise as Clearlake has robust trade data within the protecting packaging and e-commerce ecosystems,” he stated in a information launch.
IPG chairman James Pantelidis stated the board decided the transaction was in one of the best pursuits of the corporate and shareholders after evaluating options.
Based by Mr. Yull in 1981 and included in Montreal in 1993, IPG makes a wide range of merchandise used for packaging, together with tapes and movies.
It has about 4,100 workers with operations in 34 areas, together with 22 manufacturing services in North America, 5 in Asia and two in Europe.
Clearlake co-founder and managing accomplice Jose Feliciano and managing director Arta Tabaee added that the addition of Intertape to its portfolio helps its thesis that “long-term client tendencies favour suppliers targeted on sustainability and innovation.”
The deal, which is topic to customary closing situations, together with receipt of shareholder, regulatory and courtroom approvals, is anticipated to shut within the third quarter. A shareholder assembly to approve the transaction is anticipated in Could.
Analyst Walter Spracklin of RBC Dominion Securities stated the settlement is constructive for shareholders “as an all-cash deal speaks to the standard of the underlying enterprise.”
In November the corporate revised its income forecasts for 2021, saying it anticipated $1.54-billion, up from a spread of $1.42-billion to $1.5-billion predicted three months earlier.
The sale of Intertape comes greater than a decade after it restructured operations, together with closing and promoting its final Ontario manufacturing facility in Brantford, Ont., practically three years after a strike made the plant unprofitable. It beforehand closed two smaller services in Hawkesbury, Ont.
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