Transcontinental Inc. has added film extrusion as part of its thrust into plastic flexible packaging.
The Montreal company said Oct. 17 that it bought all the shares of Flexstar Packaging Inc. of Richmond, British Columbia. Transcontinental paid about C$44 million (US$33.4 million) for Flexstar, which had sales of about C$36 million (US$27.4 million) for the 12 months ending in July. Flexstar's earnings before interest, taxes, depreciation and amortization were about C$6 million (US$4.56 million).
Flexstar extrudes polyethylene film and specializes in barrier films. It prints, laminates and makes pouches for cereal, confectioneries, snacks, frozen food and coffee.
Transcontinental senior vice president of finance Donald Lecavalier said in a phone interview that his company might integrate Flexstar's film production with other flexible packaging businesses it has acquired.
“We need to take a look at maximizing the synergies,” explained Lecavalier.
The deal gives the Montreal printing and media conglomerate its first plant in Canada and on the west coast.
Lecavalier said Transcontinental intends to grow its packaging business.
“We will be in acquisition mode for the next few years.”