MONTREAL—Transcontinental Inc., has entered into a definitive agreement to acquire Ultra Flex Packaging Corp., a Brooklyn, New York-based supplier of flexible packaging, for $80 million. The money is to be paid in cash at closing plus an additional consideration payable subject to attaining pre-established financial targets.

"This acquisition builds on our Capri Packaging acquisition last year and is part of our strategy to ensure our future growth path through diversification," François Olivier, president and chief executive officer of TC Transcontinental, said. This latest acquisition expands our footprint in the U.S., gives us access to a national sales force, to new vertical markets and manufacturing capabilities. Once the acquisition has been completed, we will report annualized revenues of over US$150 million in our packaging division. The three co-owners of Ultra Flex Packaging have agreed to stay on to ensure a smooth transition, provide continuity and support future growth. We are very optimistic of our growth prospects in this area and look forward to welcoming our new employees soon."

Ultra Flex Packaging has almost 300 employees and generated US $72 million in annual revenues and US $12 million in operating income before amortization in its last fiscal year. The acquisition is subject to regulatory approval in the U.S. and is expected to close before the end of our fiscal year.

"We are very pleased to join TC Transcontinental," Eli Blatt, founder and chief executive officer of Ultra Flex Packaging, said. “While we bring to the table industry knowledge, a highly skilled workforce and a national sales team, TC Transcontinental brings strong leadership, financial means and decades of manufacturing experience. Together we have what it takes to build the foundation for future growth."