Transcontinental Inc. pursues further growth in packaging with a third acquisition
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Montreal, June 30, 2016 – Transcontinental Inc. (TSX: TCL.A TCL.B) announced today that it has acquired Robbie Manufacturing, a flexible packaging supplier located in Lenexa, Kansas. Robbie Manufacturing specializes in on-site packaging needs for grocery stores, shrink wrap packaging of multipack consumer goods, and packaging solutions for food processors. With more than 175 employees, it generated US$50 million in annual revenues in its most recent fiscal year.
"This acquisition is great news for the ongoing development of our flexible packaging division, an important area of growth for the Corporation," said François Olivier, President and Chief Executive Officer of TC Transcontinental. "The acquisition of Robbie Manufacturing is strategic on two fronts. It allows us to enter into two new packaging niches while also creating opportunities for synergies with our existing facilities nearby. The company shares TC Transcontinental's values and fosters a similar culture, putting their customers at the heart of everything they do. We're pleased to welcome our new employees who will contribute to TC Transcontinental's growth and success."
"It's a privilege for Robbie Manufacturing and the entire team to join the ranks of TC Transcontinental, a solid, well-established family-controlled corporation led by seasoned leaders and driven by a vision for the future," added Irv Robinson, Robbie Manufacturing's co-founder and CEO. "TC Transcontinental's vast entrepreneurial experience will undoubtedly help Robbie Manufacturing grow and remain a supplier of choice for its customers. We've worked hard to build our reputation over the years, and we know that TC Transcontinental will continue in this vein while respecting the values that sustain our company."
TC Transcontinental's first strategic acquisition in the flexible packaging sector was Capri Packaging, in 2014. In 2015, the Corporation doubled its revenues in this area by purchasing Ultra Flex Packaging Corp. For more information, visit our website at www.tc.tc.
About TC Transcontinental
Canada's largest printer with operations in print, flexible packaging, publishing and digital media, TC Transcontinental's mission is to create products and services that allow businesses to attract, reach and retain their target customers.
Respect, teamwork, performance and innovation are strong values held by the Corporation and its employees. The Corporation's commitment to its stakeholders is to pursue its business and philanthropic activities in a responsible manner.
Transcontinental Inc. (TSX: TCL.A TCL.B), known as TC Transcontinental, has close to 8,000 employees in Canada and the United States, and revenues of C$2.0 billion in 2015. Website: www.tc.tc
Our public communications often contain oral or written forward-looking statements which are based on the expectations of management and inherently subject to a certain number of risks and uncertainties, known and unknown. By their very nature, forward-looking statements are derived from both general and specific assumptions. The Corporation cautions against undue reliance on such statements since actual results or events may differ materially from the expectations expressed or implied in them. Forward-looking statements may include observations concerning the Corporation's objectives, strategy, anticipated financial results and business outlook. The Corporation's future performance may also be affected by a number of factors, many of which are beyond the Corporation's will or control. These factors include, but are not limited to, the economic situation in the world and particularly in Canada and the United States, structural changes in the industries in which the Corporation operates, the exchange rate, availability of capital, energy costs, competition, the Corporation's capacity to engage in strategic transactions and integrate acquisitions into its activities, the regulatory environment, the safety of its packaging products used in the food industry, innovation of its offering and concentration of its sales in certain segments. The main risks, uncertainties and factors that could influence actual results are described in Management's Discussion and Analysis (MD&A) for the fiscal year ended on October 31st, 2015, in the latest Annual Information Form and have been updated in the MD&A for the second quarter ended April 30th, 2016.
Unless otherwise indicated by the Corporation, forward-looking statements do not take into account the potential impact of nonrecurring or other unusual items, nor of divestitures, business combinations, mergers or acquisitions which may be announced after the date of June 30, 2016.
The forward-looking statements in this press release are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation.
The forward-looking statements in this release are based on current expectations and information available as at June 30, 2016. Such forward-looking information may also be found in other documents filed with Canadian securities regulators or in other communications. The Corporation's management disclaims any intention or obligation to update or revise these statements unless otherwise required by the securities authorities.
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Director, External Communications
Jennifer F. McCaughey
Vice President, Communications