CANADA – Canadian flexible packaging manufacturer TC Transcontinental has completed the acquisition of Colombia-based flexible packaging company, Banaplast in a bid to expand its presence in Latin America.
Founded in 2009, Banaplast is a flexible packaging company engaged in the protection of crops in the banana and plantain agro-industrial sector and other fruit plantations.
The company currently manufactures plastic products with advanced technology for the agro-industrial sector, particularly bananas, pineapples and other fruit trees that use ‘plasticulture’ for greater productivity.
It also produces ‘ecological’ plastic bags as a replacement for conventional plastic bags as part of its sustainability efforts.
The acquisition is intended to expand TC Transcontinental Packaging’s offerings and network in the Latin American agro-industrial market.
According to Ricardo Garcia Merlo, Senior Vice President and Managing Director, Latin America at Transcontinental Packaging, “the acquisition is aligned with our growth strategy of innovation and proximity to key markets in the agro-industrial segment.
“With Banaplast, we are expanding our offering, namely with banana tree bags and agro-mulches, and our network with the addition of Banaplast to our existing operations in Costa Rica, Ecuador, Guatemala and Mexico.”
Commenting on the deal, Thomas Morin, President of TC Transcontinental Packaging said: “We welcome Banaplast to the TC family. Banaplast has a proven growth record based on a successful combination of innovation, customer focus and excellent products in line with TC’s strategy in the region.
“The banana market is the active ingredient in film. It’s a perfect example of the value of a package because it improves crop yields, protects crops during the growth cycle, and extends shelf life for export.”
TC Transcontinental Packaging provides flexible packaging and advanced coatings across the US, Canada, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, the UK and New Zealand.
The acquisition comes after TC Transcontinental reported revenue growth of 21% in the packaging sector and 9% in the printing sector in the second quarter of the fiscal year 2022 (FY22).
The company posted revenues of US$715.5 million for the three months to 1 May, as well as operating earnings of US$46.1 million.
In November last year, TC Transcontinental acquired US-based die-cut lid and label maker HS Crocker for an undisclosed sum.
HS Crocker produces pressure-sensitive labels for customers in the pharmaceutical market and die-cut lids for the food, dairy and other markets.
The deal represented the company’s ninth flexible packaging acquisition.
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