Intertape Polymer to buy Glencoe-backed Polyair for $192 mln

Intertape Polymer Group Inc (TSX: ITP) has agreed to acquire 100 percent of the equity value in Polyair Inter Pack Inc, a Toronto-based maker and marketer of protective packaging products, including bubble cushioning, foam, mailers and air pillow systems.

Intertape, a Montréal-based packaging company, agreed to pay about $192 million (US$146 million) in cash. The deal is expected to close in the third quarter.

Founded in 1968 and led by CEO Gary Tessitore, Polyair operates seven manufacturing facilities in North America. Intertape said the acquisition will strengthen its product bundle, bring additional scale of protective solutions, and facilitate cross-selling.

Polyair has been a portfolio company of Glencoe Capital, a U.S. private equity firm, since 2004.


Intertape Polymer Group Announces Agreement to Acquire Polyair Inter Pack

– Accretive acquisition expected to strengthen IPG’s product bundle with complementary line of protective packaging products –

MONTREAL and SARASOTA, Fla., July 18, 2018 (GLOBE NEWSWIRE) — Intertape Polymer Group Inc. (TSX:ITP) (“IPG”) today announced it has entered into a definitive agreement to acquire 100% of the outstanding equity value in Polyair Inter Pack Inc. (“Polyair”) for total cash consideration of approximately $146 million, subject to certain closing and post-closing adjustments. All amounts are in US dollars.

Polyair, a private company, is a significant industry player in the protective packaging business with seven manufacturing facilities and a distribution center in North America. Polyair’s primary products consist of bubble cushioning, foam, mailers and air pillow systems, which are complementary to IPG’s existing product offering. The acquisition will further strengthen IPG’s product bundle and bring immediate and additional scale of protective packaging solutions. With the diverse set of customers between IPG and Polyair, this enhanced product bundle should facilitate significant cross-selling opportunities as both companies currently sell products through similar distribution and end user customer channels. Specifically, both companies have been focused on the e-commerce segment as a growth engine, which is expected to be leveraged even further with this combination. In addition to these revenue synergies, IPG expects to benefit from certain operational cost synergies at Polyair. Upon closing, IPG expects to have a comprehensive offering of packaging and protective solutions with the capability to serve more customers in multiple geographic markets.

“We believe this acquisition demonstrates our commitment to deliver on our strategic growth targets and become a global leader in packaging and protective solutions. We consider protective packaging an important driver of our vision and we expect this acquisition to create value for our shareholders,” said Greg Yull, President and CEO of IPG. “Polyair is a leader in protective packaging solutions with products and customers that complement our existing portfolio. Polyair has built a strong brand with its customer base through its commitment to operational excellence and low-cost manufacturing. We believe significant opportunities exist for us to expand our existing relationships with a protective-solutions offering, especially in the e-commerce segment, and win new customers with a broader and stronger product bundle.”

“We believe IPG shares our vision of customer service, product breadth and quality as well as operational excellence in low-cost manufacturing. Joining them should offer us a platform for growth and a scale that will benefit our customers and employees,” said Gary Tessitore, CEO of Polyair. “We have built a business that is recognized by our customers for quality products and reliable service and we expect to continue to deliver on both those fronts as part of the IPG family.”

The acquisition is subject to customary closing conditions and approvals and is expected to close in the third quarter of 2018 pending antitrust regulatory approval. Once completed, this acquisition will be the sixth strategic transaction that IPG has completed in the past four years.

Financial Highlights of the Acquisition

IPG estimates Polyair will generate approximately $133 million of revenue, approximately $14 million in adjusted EBITDA in the twelve months ending December 31, 2018 and will be accretive to IPG earnings in 2019, excluding deal costs, integration costs and non-cash purchase price accounting adjustments. IPG estimates Polyair will generate approximately $20 million to $22 million in adjusted EBITDA by 2021, which includes synergies and organic growth driven primarily by its e-commerce business channel. Based on the acquisition price and the expected synergies, the post-transaction valuation multiple is expected to be approximately seven times adjusted EBITDA. No cash or debt will be acquired in the transaction.

IPG expects to fund the acquisition with funds available under IPG’s $600 million credit facility.

About Polyair Inter Pack Inc.

Polyair Inter Pack Inc. is a privately-held company that has dual headquarters in Toronto, Ontario and Chicago, Illinois. As a leader in the industry, Polyair is one of the more significant manufacturers of protective packaging, operating seven manufacturing facilities and employing approximately 600 employees across North America. Its products include bubble cushioning, foam, mailers and air pillow systems. For more information, visit

About Intertape Polymer Group Inc.

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, IPG employs approximately 2,850 employees with operations in 20 locations, including 13 manufacturing facilities in North America, two in Asia and one in Europe. For more information about IPG, visit

FOR FURTHER INFORMATION CONTACT: Ross Marshall Investor Relations (T) (416) 526-1563 (E)