Transcontinental Inc., a Canada-based newspaper publishing & marketing firm, has scarcely made it to the headlines for having taken a giant step toward curbing commercial printing. The Montreal-headquartered company plans to penetrate the regional flexible packaging market through its largest deal signed so far. If reports are to be believed, Transcontinental will be purchasing Coveris Americas in a deal worth USD 1.32 billion.
The billion-dollar agreement had been announced after a long-drawn auction and is touted to complement Transcontinental’s product portfolio encompassing pet food, consumer products, and dairy. Furthermore, the deal would add beverage, protein, and agriculture as well, to Transcontinental’s product offering.
Francois Olivier, the chief executive officer of TC Transcontinental, has been quoted stating that the firm plans to diversify its packaging capabilities that would enable the company to increase its share of wallet with its current consumer base. He further added that hereon, the company’s customer pool would increase and would be inclusive of some leading clientele.
For the record, Transcontinental has a workforce of over 1,000 people at seven packaging facilities, one of which was declared just last month. The Chicago based Coveris Americas on the other hand, already has a firm hold in the regional flexible packaging industry and has a wider workforce as well. As per authentic records, by the end of 2017, Coveris boasted of more than 3,100 employees at 21 production facilities globally, one of which is in Ontario, with 140 employees, and 14 others spread across the U.S. The rest of its facilities are distributed across Mexico, UK, Ecuador, China, Guatemala, and New Zealand.
It is being speculated that this all-cash agreement, valued at around CAD 1.72 billion, will bank on the combined expertise and strength of both these reputed companies.
Transcontinental’s paradigm shift to eliminate commercial printing and gain ground in flexible packaging market is certain to prove lucrative for its revenue graph ahead, claim industry experts. Incidentally, Transcontinental forecasts that the company may be able to accomplish cost savings of around USD 20 million over the next two years.