MONTREAL, Nov. 11, 2016 /CNW Telbec/ - IPL Inc., a North American leader in products and plastic injection molded solutions in the food and industrial, continues its growth by today announcing the acquisition of Encore Industries Inc. for US $ 35 million. Encore is a producer of rigid plastic packaging products for the North American industrial packaging market with three strategically located facilities in the United States in Ohio, Georgia and Minnesota. The acquisition, made in collaboration with IPL's parent company One51, and partners Caisse de dépôt et placement du Québec and the Fonds de solidarité FTQ, makes IPL the third largest player in America in the plastic injection molded products market.
IPL also announces a major investment plan of $ 36 million to expand its production capacity in both Canada and the United States to meet strong customer demand for its products and also to enter new market segments in the United States.
The acquisition of Encore will have several beneficial effects for IPL, including:
- Providing expansion opportunities in the growing North American plastic industrial packaging market;
- Delivering a high quality and complementary customer base that will provide cross-selling opportunities for IPL and Encore's products
- Bringing well invested, strategically located manufacturing facilities with capacity for material expansion to meet customer demand together with an extensive distribution network to various North American markets;
- Delivering increased new product development through knowledge sharing and transfer within the Group;
- Providing greater synergy in procurement costs.
"The acquisition of Encore is strategic for IPL and, both by the location of its facilities and by the type of products manufactured there", said Luis De Jesus, IPL's President and CEO. "Encore will allow us to offer a wider range of products to more customers in more places across North America, while ensuring the long-term future of IPL as a whole."
"This transaction by IPL solidifies the important place it has in its industry in the North American market", said Christian Dubé, Executive Vice-President, Québec of Caisse de dépôt et placement du Québec. "It's another clear example of a Québec company that continues to grow through acquisitions, positioning itself more favourably to stand out in the global arena."
"The Fonds de solidarité FTQ invested in IPL with ONE 51 and the Caisse de dépôt et placement du Québec because the company had a plan for growth based on innovation and acquisitions. We are thrilled by the Encore acquisition by IPL as this confirms the realisation of this plan which will consolidate its position as a North American leader", concluded Janie Béïque, Senior Vice-President, Industries, Entertainment and Consumer Goods at the Fonds de solidarité FTQ.
Established in 1939, IPL is a leading North American manufacturer of injected moulded plastic products. Operating from three manufacturing plants located in Saint Damien (Canada), Edmunston (Canada) and Lee's Summit, Missouri (USA), IPL designs and manufactures products for the food and bulk packaging, environment and material handling sectors in Canada and the United States. One51 holds a 67% majority shareholding in IPL together with its partners Caisse de Depot et Placement du Quebec and the Fonds de Solidarité FTQ, who each hold 22% and 11% respectively. For more information about IPL, please consult www.ipl-plastics.com.
One51 comprises two operating divisions focused on plastics and environmental services. One51 employs c.1,950 people in Ireland, the UK, Canada, the United States and China. The Group is headquartered in Dublin, Ireland. The Group's Plastics Division is focused on the design, development and manufacture of a wide range of rigid plastic products to a variety of end market segments across a number of geographic markets. For more information about One51, please consult www.one51.com.
About Encore Industries Inc.
Encore was founded in 1997 and operates three production and assembly facilities in the United States - Cambridge, Ohio, Forsyth, Georgia and Remer, Minnesota. Encore serves a wide customer base including large national manufacturers, retailers and distributors serving the coatings, marine and automotive sectors throughout the United States and Canada.
About Caisse de dépôt et placement du Québec
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2016, it held $254.9 billion in net assets. As one of Canada's leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure and real estate. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a development capital investment fund that uses the saving of Quebecers. With net assets of $11.7 billion at May 31, 2016, the Fonds contributes to the creation and maintenance of 187,414 jobs. The Fonds is a partner of more than 2,600 companies and has 618,551 investors-shareholders. fondsftq.com
SOURCE IPL Inc.
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