In a major packaging deal, Clearlake Capital Group LP has acquired Intertape Polymer Group Inc. for $2.6 billion in cash.

Intertape is a global maker of plastic film and other packaging materials based in Montreal and Sarasota, Fla. Clearlake is a private equity firm based in Santa Monica, Calif.

The purchase price is based on an offer of C$40.50 (US$31.54) per share for Intertape, which is listed on the Toronto Stock Exchange. In a March 8 news release, officials said the offer represented a premium of 82 percent to Intertape's per-share price March 7.

"We believe this transaction is a great next step in the evolution of our business as Clearlake has strong industry knowledge in the protective packaging and e-commerce ecosystems," Intertape President and CEO Greg Yull said in the release.

He added that Clearlake "provides us the operational and financial resources to accelerate our acquisition strategy, as well as organic growth opportunities such as investing in product innovation, sustainability and market expansion."

"We have built a scaled business serving a diverse set of growing end markets, and have seen particularly strong growth in our large e-commerce segment. Clearlake's investment reflects its confidence in our people, processes, and strategy, and this transaction will advance our vision of becoming a global leader in packaging and protective solutions."

Clearlake officials José E. Feliciano and Arta Tabaee added in the release that their firm "has a long-standing respect and admiration for [Yull] and his team as they have built on IPG 's position as a key packaging and protective solutions provider to a diverse set of attractive and growing end-markets."

When contacted by Plastics News, officials with both Intertape and Clearlake declined to make additional comments on the deal until it closes.

Intertape's board has unanimously determined that the transaction is in the firm's best interests and fair to shareholders, the company said. Board members recommend that shareholders approve the transaction.

The transaction is expected to close in the third quarter of 2022.

Based on the most recent Plastics News ranking, Intertape is North America's 18th largest film and sheet maker, with annual sales of $560 million.

Even with the challenges of COVID-19, Intertape's $1.21 billion sales total for 2020 was more than 4 percent higher than 2019. The firm's 2020 profit surged almost 80 percent to $73.5 million.

In the first nine months of 2021, Intertape posted sales of $1.12 billion, up 29 percent vs. the same period in 2020. The firm's profit grew 7 percent to $60.3 million in the same comparison.

Officials previously said that third-quarter sales were up more than 20 percent because of higher selling prices in tape, film, woven and protective packaging products, driven by increases in the cost of many raw materials and freight. Intertape will release full-year 2021 results on March 15.

In July, Intertape paid almost $44 million to acquire Hong Kong-based Nuevopak Global Ltd., a designer and developer of machines that provide void-fill and cushioning protective packaging solutions. Nuevopak had supplied Intertape with paper dispensing machines and converted paper for protective packaging distribution in North America. Intertape officials said the acquisition is expected to secure dispensing machine supply and vertically integrate its paper converting operation.

Clearlake has more than $60 billion of assets under management, with core target sectors in industrials, consumer, and technology. The firm also owns Pretium Packaging LLC, one of North America's largest blow molders.

Clearlake now has made three major plastics acquisitions in less than three years. It bought Chesterfield, Mo.-based Pretium in early 2020 before acquiring cap, closure and jar maker Mold-Rite Plastics LLC of Plattsburgh, N.Y., in September 2021. Mold-Rite focuses on health and wellness markets, but also makes products for specialty food, personal care and other uses.

Under Clearlake's ownership, Pretium has made several acquisitions, most significantly buying Alpha Consolidated Holdings Inc. — another major blow molder — in September 2021. Most recently, in December Pretium bought Mexican rigid packaging maker Grupo Edid. Pretium's acquisitions have made it one of North America's 10 largest blow molders with annual sales of about $700 million.

Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

Please enter a valid email address.

Please enter your email address.

Please select at least one newsletter to subscribe.

Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

1155 Gratiot Avenue Detroit MI 48207-2997