Intertape Polymer Group® Enters Agreement to Acquire Majority Ownership of Powerband®
IPG® enters agreement to strategically broaden its global position by establishing an asset base in India
MONTREAL, QUEBEC; SARASOTA, FLORIDA and DAMAN, INDIA, September 2, 2016Â - Intertape Polymer Group Inc. (TSX:ITP) (“IPG” or “the Company”), a leading manufacturer of packaging products and machinery, today announced the execution of an agreement to acquire a 74% ownership stake in Powerband Industries Private Limited (d/b/a “Powerband”), a global supplier of acrylic adhesive-based carton sealing tapes and stretch films located in Daman, India. The remaining 26% will continue to be held by the Desai family which founded the Company in 1994. This transaction is expected to officially close before the end of 2016 subject to satisfaction of certain customary conditions precedent. Once completed, Powerband will become a 74%-owned subsidiary of IPG, further extending IPG’s product offering and global presence in the rapidly growing world packaging market. All amounts in this press release are denominated in US dollars unless otherwise indicated.
Powerband’s revenue for the most recently completed fiscal year was approximately $32 million. The purchase price of approximately $42 million will be financed with funds available under the Company’s revolving credit facility. The Company expects that these acquired operations will be accretive to net earnings.
“We believe that it is critical to IPG’s growth that we expand from being a primarily North American producer to becoming a greater participant in the global market,” said Greg Yull, IPG’s President and Chief Executive Officer. “This transaction materially furthers IPG’s strategy to expand globally due, in part, to Powerband’s presence in virtually every significant global market, as well as providing IPG with the benefit of access to a low cost and high growth jurisdiction.”
Rajan Desai, the current Managing Director and founder of Powerband, will continue to manage Powerband’s operations and remain a significant shareholder. The business will remain headquartered in Daman, India.
About Powerband
Powerband is based in Daman, India which is approximately 100 miles north of Mumbai. Powerband has 220 fulltime employees and is a leading manufacturer of packaging tapes and stretch films. From its ISO 9001:2008 and ISO 14001:2004 certified facility, Powerband services the Indian market and exports packaging product to more than 30 countries. For more information, visit www.powerband.in.
About IPG
Intertape Polymer Group Inc. is a recognized leader in the development, manufacture and sale of a variety of paper and film based pressure-sensitive and water-activated tapes, polyethylene and specialized polyolefin films, woven coated fabrics and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota, Florida, the Company employs approximately 2,000 employees with operations in 17 locations, including 12 manufacturing facilities in North America and one in Europe. For more information about IPG, visit www.itape.com.
