Ultra Flex Packaging employs nearly 300 people in Brooklyn, NY.
September 2, 2015
by The Canadian Press
MONTREAL — Transcontinental expects to double its packaging division’s revenues after agreeing to buy a firm in Brooklyn, NY, that will expand the reach of its US business.
The Montreal-based printer and publisher says it will pay US$80 million cash, plus additional funds if performance targets are met, to acquire Ultra Flex Packaging, which employs nearly 300 people.
Ultra Flex has about US$72 million in annual revenues, which will grow Transcontinental’s packaging division to about US$150 million in annual revenue.
Transcontinental has identified packaging as a growth opportunity that will partly offset declines in its core businesses related to a widespread, long-term shift to electronic publishing.
Chief executive Francois Olivier said the acquisition builds on last year’s acquisition of Capri Packaging in Clinton, Missouri, which does plastic packaging for food products such as cheese and fresh pasta.
Ultra Flex’s three co-owners will remain with the company to support its growth.
Transcontinental is Canada’s largest printer, with operations in print and digital media, flexible packaging and publishing and more than $2 billion of annual revenues. It also publishes a number of publications.
© 2015 The Canadian Press