Transcontinental Inc. acquires Québec-based Les Industries Flexipak Inc., extending its flexible packaging footprint to Eastern Canada
Montréal, November 1st, 2017 – Transcontinental Inc. (TSX: TCL.A TCL.B) announced today that it has acquired Les Industries Flexipak Inc., a flexible packaging supplier located in Montréal, Québec, employing 55 people. The company is a converter specialized in flexographic printing, lamination as well as bag and pouch making, and has other value-added capabilities. Les Industries Flexipak Inc. offers a wide range of flexible packaging products serving consumer goods companies, food processors and retailers across several markets including frozen fruits and vegetables, seafood, snacks, grains, nuts and beverage (shrink films). It is the first flexible packaging company in Québec to be awarded BRC Packaging certification, a standard recognized by the Global Food Safety Initiative (GFSI), with an AA grade.
"I am excited to announce this fifth flexible packaging acquisition in North America – our first in the province of Québec – which marks yet another step in the development of our North American network," said François Olivier, President and Chief Executive Officer of TC Transcontinental. "This transaction extends our footprint to Eastern Canada by adding a Montréal-based facility equipped with a state-of-the-art platform, and gives us the opportunity to further develop our existing business relationships with retailers in the country. Driven by its belief in outstanding customer service and innovation, Flexipak has a strong family business culture that will naturally blend with ours. We are truly delighted to welcome Flexipak's employees to the TC Transcontinental family and look forward to growing our flexible packaging business with them."
Les Industries Flexipak Inc. was founded in 1998 by President and Chief Executive Officer Charles Boustany. As part of the transaction, all managers and employees will be retained, including Karl Boustany, Vice President and General Manager. Customers will therefore continue to be serviced by the current team.
"Flexipak has been a family-owned business for nearly 20 years and, today, I am very proud that it is joining a solid family-controlled corporation headquartered in Montréal," said Charles Boustany. "The fact that we were chosen by TC Transcontinental is an indisputable validation of our successful business model. TC Transcontinental is led by seasoned leaders who foster a long-term vision to grow its flexible packaging division. I am confident that Flexipak's talented team, led by my son Karl, will continue to thrive as part of TC Transcontinental Packaging's North American network, with a continued focus on quality and excellent customer service. Our two companies are a natural fit. TC Transcontinental's entrepreneurial spirit, core values and strong culture will undoubtedly resonate with Flexipak's employees as they embark on this new chapter."
In 2014, TC Transcontinental made its first strategic acquisition in the flexible packaging industry with Capri Packaging, located in Missouri. In 2015, the Corporation doubled its revenues in this area by acquiring Ultra Flex Packaging Corp. in New York. TC Transcontinental made two other acquisitions in 2016: Robbie Manufacturing in Kansas and Flexstar Packaging Inc. in British Columbia – its first flexible packaging acquisition in Canada.
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 more than 7,000 employees in Canada and the United States, and revenues of C$2.0 billion in 2016. 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 October 31, 2016, in the latest Annual Information Form and have been updated in the MD&A for the third quarter ended July 30, 2017.
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 November 1st, 2017.
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 November 1st, 2017. 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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