Intertape Polymer Group Inc. is buying most of the assets of Olympian Tape Sales Inc., which operates as United Tape Co.
Montreal-based Intertape (IGP) said United Tape has operations in California and Georgia and had sales of about $45-million (U.S.) last year. It supplies packaging materials to the retail market, the company said.
Intertape didn't disclose the complete terms of the deal, but said it would involve cash derived from working capital, the assumption of certain debts and the issuance of $4-million in treasury shares.
Intertape is a relatively small player in the retail market, but recent acquisitions and new products have given it a more complete line of offerings, the Canadian company said.
"The purchase of United Tape will assist IPG in gaining faster access to the market as well as provide economies of scale and accelerate IPG's growth within the retail trade," Melbourne Yull, Intertape's chief executive officer, said in a statement.
If the deal is completed, the U.S. company will remain a stand-alone entity under its current management, Mr. Yull said.
Intertape said expects to supply about $10-million to $15-million worth of products to United Tape that the U.S. company had been buying from other manufacturers.
"Most acquisitions do not provide immediate new volume, cost savings and excellent management," Mr. Yull said.
"The acquisition of United Tape gives IPG all of the above without enduring both lengthy and costly integration steps to obtain these results."
Intertape makes and sells specialized polyolefin plastic-based and paper-based packaging products and systems for industrial and retail use. It had sales of $570-million (Canadian) last year.
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