Intertape Polymer Group (IPG) has completed the previously announced acquisition of Montreal, Canada-based tape manufacturing Canadian Technical Tape (Cantech).
The purchase allows IPG to expand its tape manufacturing capabilities not only in the North American market in the US and Canada, but also across Europe.
For the transaction IPG has paid $67m, which is slightly higher than the previously announced $63m due to some changes in purchase price adjustments.
The offer was made in June this year. Unaudited sales of Cantech as of this March were claimed to be $61m.
IPG stated that it will use credit revolving facility to finance the transaction. And, with this transaction, the company is also increasing its existing credit from $300m to $450m.
When the offer was made, IPG president and CEO Greg Yull said "We believe that Cantech represents a strong strategic fit with our existing product portfolio and operations.
“This acquisition should significantly reinforce our presence in our existing tape product lines and customer channels such as the building and construction and retail segments as well as provide access to new business segments. The Cantech team has impressed us with their achievements in the industry and we are proud to welcome them to our team at IPG."
Intertape Polymer Group (IPG) is a Canadian company, which operates from Montreal, Quebec and Sarasota in the US state of Florida.
Cantech, with its workforce of 250 manufactures industrial, specialty tapes and pressure sensitive adhesive tapes
Last September, the company agreed to acquire majority stake in Powerband, an Indian manufacturer of acrylic adhesive-based carton sealing tapes and stretch films. IPG has paid $42m as consideration.