MONTREAL—Transcontinental, Canada's largest printer, has signed to acquire the assets of Capri Packaging, a supplier of printed flexible packaging housed in Clinton, MO.

"This acquisition represents an important strategic move for the corporation into a new promising growth area. It is part of our strategy to ensure our future growth path through diversification," said president and chief executive officer Francois Olivier in a Transcontinental release.

"The printed flexible packaging industry was rapidly identified as a natural fit given that the production process is very similar to TC Transcontinental's printing operations and the market offers many opportunities for growth," he said.

The deal carries a price tag of $133 million (all figures in American currency) and is subject to regulatory approval in the U.S.

Capri Packaging is a division of a $5 billion dairy company called Schrieber Foods located in Wisconsin. Transcontinental is purchasing two facilities in Clinton, which employ 200 staff members and generate revenue of $72 million.

As part of the deal Schreiber has a signed a 10-year agreement to use Capri Packaging as a "strategic supplier" of printed flexible packaging, which Transcontinental says accounts for 75% of Capri's total revenue.