Intertape Polymer Group Inc. (TSX:ITP) (“IPG” or the “Company”) today announced it has entered into a definitive agreement to acquire Nuevopak Global Limited (“Nuevopak”) for approximately $43.8 million in total cash consideration, consisting of $34.8 million to be paid at closing and the remaining amount, subject to certain post-closing adjustments and potential contingent consideration, to be paid within three years from the date of closing. All amounts are in US dollars.
Nuevopak designs and develops a range of machines to provide void-fill and cushioning protective packaging solutions. Nuevopak currently supplies IPG with paper dispensing machines and converted paper for protective packaging distribution in North America. Nuevopak is a privately held company headquartered in Hong Kong with subsidiaries in Jiangmen, China and Scheden, Germany that serve customers around the world, providing protective packaging solutions using a combination of world-class innovation and specialized industry experience.
This acquisition is expected to further enhance IPG’s protective packaging business and strengthen its product bundle, thereby supporting IPG’s vision to be a global leader in packaging and protective solutions. The acquisition is also expected to enable IPG to secure dispensing machine supply, vertically integrate its paper converting operation, and expand market share in this growing, sustainability-focused market.
“Protective packaging, and our ability to offer a comprehensive solution, including consumable products, dispensing machines, and field support services, continues to be a strategic portion of our product bundle,” said Greg Yull, President and CEO of IPG. “Nuevopak has been a valued partner of ours for several years and this acquisition was a natural evolution of that relationship. The dispensing machines and the protective packaging products represent a “razor-razorblade” business model that further embeds us with our valued customers. The acquisition represents a near-term opportunity that increases our ability to service the e-commerce vertical which is expected to see strong growth for the foreseeable future. We will continue to be disciplined in our approach to acquisitions that strengthen our product bundle and generally offer strategic benefit to IPG meeting our customers’ needs. We believe that this acquisition delivers on both fronts.”
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