Shareholders have blocked an agreed-to sale of flexible packaging producer Intertape Polymer Group Inc.
Shareholders representing about 70 percent of votes rejected a plan for private equity firm Littlejohn & Co. LLC to buy Intertape for US$500 million, including US$305 million in debt.
Intertape indicated in a June 29 news release that the agreement with Littlejohn has been terminated. Dissident shareholders had complained that the Littlejohn offer devalued the firm.
Rejection of the offer at a special shareholders meeting June 28 was followed by election of a new board of directors that includes former Chairman and Chief Executive Officer Melbourne Yull and former director Eric Baker.
Also on the board are former CEO Dale McSween and new director George Bunze. Baker was elected chairman.
An Intertape spokesman said the new board will seek to strengthen the company by an injection of capital, possibly through a rights offering.
The Littlejohn deal, first announced May 2, would have required approval from two-thirds of Intertape shareholders.
Littlejohn is based in Greenwich, Conn.
Intertape is based in St. Laurent, Quebec, with offices in Bradenton, Fla. The company has about 2,100 employees at 17 locations, including 13 plants in North America and one in Europe.