ProAmpac went ahead and inked a definitive agreement in order to acquire TC Transcontinental Packaging – TCP from TC Transcontinental for $1.51B. This is going to be subject to customary adjustments when it comes to debt and debt-like items, cash as well as net working capital.
ProAmpac goes on to bring sustainability and speed as well as material science to the worldwide packaging market. TCP, on the other hand, is a strong strategic fit that is going to add advanced capabilities within dairy, meat, and medical as well as pharmaceutical end markets, along with manufacturing capacity throughout North America, Latin America, the United Kingdom as well as New Zealand. The combination is going to further speed up the development of next-generation packaging in ProAmpac with sustainable packaging solutions including the likes of barrier films and mono-material structures, as well as fiber-based solutions, in order to help its customers to meet their value creation along with sustainability objectives.
The Founder and Vice Chairman, as well as the CEO of ProAmpac, Greg Tucker, opines that this acquisition is indeed a transformative milestone when it comes to both ProAmpac and TCP. Through TCP, ProAmpac is going to be broadening its end-market focus in order to include protein and dairy as well as medical segments and also expanding its geographic presence. Together, they are going to be committed so as to deliver high-performing as well as increasingly sustainable packaging solutions to their customers. It is well to be noted that TCP as well as ProAmpac go on to share the same dedication toward excellence, customer focus, and also doing business the perfect way, and they are indeed thrilled to welcome the TCP team into the ProAmpac family.
According to the Executive Chair of the Board of Transcontinental Inc., Isabelle Marcoux, she believes that TCP has indeed found a very exciting new home with ProAmpac, and like TC Transcontinental, ProAmpac has gone on to build its business with a relentless focus in terms of helping customers to succeed. With this common background, they are pretty much confident that ProAmpac is indeed going to be quite a strong cultural fit for TCP and that the combination is going to be very well-positioned in order to deliver much growing value to customers. She added that they are thankful for the efforts and contributions of extraordinary employees of TCP to TC Transcontinental and are also excited for this next chapter as part of ProAmpac.
Managing Partner and Head of Investing, PPC, Michael Nelson, has maintained a continuous, constant, and long-term commitment so as to build ProAmpac into a leading packaging provider, thereby supporting both organic and acquisition growth in order to meet customer demand for packaging solutions that are much more sustainable.
He added that the acquisition of TCP pushes this strategy further by adding a highly respected provider of innovative solutions within the complementary markets and also expanding the presence of ProAmpac geographically. He added that he would also like to thank ProAmpac and TC Transcontinental, as well as the TCP teams, for all their efforts towards making this exciting combination an actual reality.
Apparently, it is Goldman Sachs that is serving as the lead financial advisor, whereas J.P. Morgan Securities LLC is going to be serving as financial advisor to ProAmpac. Kirkland & Ellis LLP as well as McCarthy Tétrault LLP are going to be serving as legal counsel when it comes to ProAmpac.
