MONTREAL — Intertape Polymer Group Inc. plans to expand its plastic- and paper-tape businesses by acquiring two subsidiaries of Spinnaker Industries Inc. of Dallas.
Intertape said April 12 that it agreed to pay US$105 million, plus 300,000 share purchase warrants, for Spinnaker Electrical Tape Co. and Central Products Co.
The warrants give Spinnaker the right to pay US$35 per share for Intertape stock any time in the next seven years. On April 13 the Intertape stock traded at C$40 (US$26.80) per share, up C$1 (67 U.S. cents) since the announcement.
Spinnaker Electrical's plant in Carbondale, Ill., makes black vinyl and other electrical tapes for consumer and industrial applications. Intertape said the facility will complement its high-temperature electrical tape pro- duction at Marysville, Mich.
Central Products makes polypropylene pressure-sensitive tapes, paper products and other tapes in Menasha, Wis., and Brighton, Colo.
Spinnaker spokesman Bill Robertson said Lynch Corp., the firm's majority owner, had said last year it was looking at opportunities to sell businesses. Lynch is a New York holding company.
Spinnaker bought the Menasha and Brighton plants in 1995 and the Carbondale operation last year.
Robertson, in a telephone interview, declined to speculate when the deals would be finalized. Intertape Chief Financial Officer Andrew Archibald said in a news release that the acquisitions reflect the Montreal company's strategy to boost sales and remain a low-cost producer.