Film manufacturer Intertape Polymer Group Inc. on Feb. 10 announced a deal to buy the operating assets of packaging machinery company Nortech Packaging LLC.
Sarasota, Fla.-based IPG, a publicly traded company, will pay approximately $36.5 million, subject to post-closing adjustments.
Schaumburg, Ill.-based Nortech makes automated packaging machines under the Nortech Packaging and Tishma Technologies brands. Its equipment is designed for cartoning, case-packing, case-erecting, pouch-packaging and palletizing.
In the last 12 months, Nortech posted sales of about $20 million, with earnings before interest, taxes, depreciation and amortization of $5.5 million.
According to IPG, the acquisition will expand its product bundle into technologies that are increasingly critical to automation in packaging.
"Packaging automation and system design are playing an increasingly important role in our customer's competitive positioning, especially in the e-commerce market," Greg Yull, president and CEO of IPG, said in a news release.
IPG expects the deal to close in the first quarter of 2020.
IPG has 3,600 employees, with 21 manufacturing facilities in North America, four in Asia and one in Europe. The company ranked No. 18 in the most recent Plastics News survey of North American film and sheet manufacturers, with relevant estimated sales of $540 million.