Intertape Polymer Group Inc.today announced it has acquired substantially all of the operating assets of Maiweave LLC (“Maiweave”) for total cash consideration of approximately $21 million, subject to certain post-closing adjustments. All amounts are in US dollars.

Maiweave is a private company based in Springfield, Ohio and an integrated US manufacturer of engineered coated polyolefin fabrics that employs approximately 75 team-members at two manufacturing facilities strategically located to service key US markets. Its products are used in applications such as grain and salt pile covers, pit and pond liners, shelter fabrics, outdoor media, and lumber mill packaging.

This acquisition strengthens IPG's existing product bundle, provides additional scale to support growing demand in woven products, and adds capacity that is in close proximity to growing markets. IPG’s woven products represent approximately 14% of the company’s expected pro forma revenue in 2018 after adjusting for the expected impact of this acquisition. Maiweave is also expected to provide IPG with the ability to leverage its new woven manufacturing facility in India ("Capstone"), which remains on budget and on time for commercial operations starting in the first half of 2019.

“This acquisition is expected to provide us with an opportunity to consolidate a US-based engineered coated products manufacturer and expand the scale of our woven products offering. Maiweave has a strong, established customer base, long-term and dedicated employees, and locations in the Midwest and in the Southeast,” said Greg Yull, President and CEO of IPG. “We believe this acquisition will enhance our ability to service our US markets such as the strengthening building and construction, oil and gas, and outdoor media industries. It also provides us an opportunity to backward-integrate manufacturing from our new Capstone facility, which is nearing completion, as an alternative to third-party product that Maiweave is currently procuring from Asia. We believe Maiweave’s focus on customer service and longstanding relationships matches up well with IPG's culture and the credibility we have established with our customer base.”

The Maiweave acquisition is the seventh strategic transaction that IPG has completed in the past four years.

 

Source: globenewswire.com

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