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IPG to acquire majority stake in Capstone Polyweave
Posted on Friday, 16 June 2017 11:41
Intertape Polymer Group (IPG) has inked an agreement to pick up a 55.0 per cent interest in Indian woven products manufacturer Capstone Polyweave for a cash consideration of around USD 13.00 million.
The payments will be made in several tranches over a period of between six and twelve months.
Commenting on the deal, chief executive of IPG, Greg Yull, stated: “IPG’s investment in Capstone and the greenfield project should reinforce our strategic position in woven products through vertical integration.
”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.”
Following completion, the deal is expected to provide IPG with a globally-competitive supply of certain woven goods in order to better service and grow its division.
The buyer will be partnering with the current shareholders of Capstone, who are also investors and operators of Airtrax Polymers Private, a company which posted unaudited revenue of USD 11.00 million in the 12 months ended 31st March 2017.
Earlier this week, IPG agreed to purchase the assets of Quebec-based industrial and specialty tapes manufacturer Canadian Technical Tape (Cantech) for roughly USD 63.00 million.
Capstone Polyweave was founded in 2017 as a private limited company under the provisions of the 2013 Companies Act in India.
Headquartered in Quebec and Florida, IPG claims to be a leader in the manufacture and sale of paper and film based pressure-sensitive and water-activated tapes.
The business employs more than 2,200 staff with operations in 17 locations worldwide.
In the three months ended 31st March 2017, IPG posted revenue of USD 207.12 million, an 8.5 per cent increase on USD 190.82 million in the same period of 2016.
Net earnings totalled USD 13.43 million for the first quarter of 2017 (Q1 2016: USD 9.53 million).
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