Flexible packaging producer Intertape Polymer Group Inc. said it is exploring strategic and financial options to boost the company's value to shareholders.
Intertape said Oct. 2 it has hired TD Securities Inc. of Toronto as its financial adviser for the exploratory process. The company's board approved the process after a financial and operational review.
"The board will consider a full range of alternatives with the best interests of the company and its shareholders in mind," said Intertape Chairman Michael Richards in a news release.
Intertape was rumored to be a takeover target in early September. The company, with headquarters in Montreal and Bradenton, Fla., lost US$18.2 million for its second quarter, ended June 30. As well, it expects sales to drop to about US$195 million in its third quarter from the US$222 million level of the second quarter, a result of slow housing markets, it said. Officials stated that when Intertape reports its third-quarter results it might not be in compliance with some financial covenants under its term credit agreement.
Intertape founder and longtime head of the firm, Melbourne Yull, stepped down as chairman and chief executive officer in June. H. Dale McSween is interim CEO while the firm looks for a replacement.
Intertape also has outlined initiatives to help get it back on track, including a line of air-pillow protective packaging products, called iCushion, that is inflated by machinery Intertape provides.
