Caisse de dépôt et placement du Québec is one of three equity investors funding Quebec-based IPL Inc.’s acquisition of California-based Macro Plastics Inc. for US$150 million.
IPL manufactures injection-molded plastic products for the food and industrial sectors while Macro Plastics manufactures rigid plastic bulk packaging to the agricultural and automotive sectors in North America. It has a significant presence in the United States and South America.
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“This acquisition is consistent with IPL’s expansion strategy, as the company continues to position itself as a major player in the rigid plastics products sectors,” said Christian Dubé, executive vice-president for Québec at Caisse, in a news release.
The acquisition is being funded through a combination of IPL senior bank facilities and additional equity from other shareholders of the company One51 plc and Fonds de solidarité FTQ.
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“This transformational acquisition gives us our first significant presence on the west coast of America, providing us with a leading position in a number of growing market segments,” said Luis de Jesus, president and chief executive officer of IPL. “The acquisition also expands our geographic reach, product portfolio and customer base across the growing North and South-American markets.”
The transaction is subject to regular closing conditions and is expected to be complete by mid-June 2017.