Intertape expands with second acquisition in a week

For the second time this week, a packaging company that formerly had its U.S headquarters in Manatee County announced a major acquisition.

Intertape Polymer Group Inc., a Canadian company that moved its U.S executive offices from Bradenton to Sarasota in 2013, said Thursday that it would pay $13 million for a majority stake in the newly formed India-based enterprise Capstone Polyweave Private Limited.

According to a news release, IPG agreed to acquire a minimum of 55 percent interest in the company and is making a greenfield investment in Capstone, which is building a $30 million manufacturing facility in India. Construction of the greenfield facility is planned to begin this year and be operational during the first half of 2019.

In doing so, IPG will be partnering with current Capstone shareholders Airtrax Polymers Private Limited so that it can provide the company with a globally competitive supply of woven products to better serve and grow that aspect of the business.

“IPG’s investment in Capstone and the greenfield project should reinforce our strategic position in woven products through vertical integration,” IPG president and CEO Greg Yull said. “We expect to achieve attractive synergies both in terms of higher profitability on our current woven products sales volume as well as additional revenue opportunities as a result of our improved position in the woven products market.

“This investment should also further IPG’s continued progress toward becoming a globally competitive manufacturer of woven products through developing and leveraging high-quality technologies and processes.”

Thursday’s announcement came just three days after IPG announced the acquisition of Montreal-based rival specialty tape supplier Canadian Technical Tape Ltd. for $63 million.

That deal will extend the company’s product offerings and provide additional distribution channels for products in the U.S., Canada and Europe. The transaction is expected to close in the third quarter of 2017.

This story was originally published June 15, 2017 at 2:12 PM with the headline "Intertape expands with second acquisition in a week."