Deals
Transcontinental Boosts Packaging in $1.32 Billion Coveris Deal
- Canadian publisher adds flexible bags and pouches, labels
- Company will finance deal with cash and bank term loans
Photographer: Kostas Tsironis/Bloomberg
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Transcontinental Inc., Canada’s biggest printer, agreed to buy Coveris Americas for $1.32 billion to bolster its packaging unit as the company pivots away from its business supplying the shrinking newspaper industry.
After the acquisition, packaging, bags and labels will make up the largest segment at Montreal-based Transcontinental, which has seen declines in its newsprint sales. Coveris, with 2017 revenue of $966 million and about 3,100 employees, has more than 3,500 customers and operations in the Americas, U.K. and Asia.