Strengthens North American Away-From-Home Platform
MISSISSAUGA, ON, June 3, 2014 /CNW Telbec/ - Kruger Products L.P. (KPLP) announced today that it has completed the acquisition of all of Metro Paper Industries Inc.'s (MPI) Canadian tissue converting assets, located in Trenton, Ontario and Scarborough, Ontario for a total cash consideration of $23.5 million. The deal includes Metro's entire North American Away-From-Home (AFH) customer base as well as a non-compete agreement. Metro's revenues in 2013 were approximately $65 million, split equally between the US and Canada.
"We are excited about the opportunity to add the complementary product lines to our growing AFH business and this acquisition will immediately provide much needed additional capacity. As the AFH market leader in Canada, we are committed to building on our leadership position and driving our Company forward," said Mario Gosselin, Chief Executive Officer, KPLP.
"This acquisition will reinforce our position with our valued North American customers. It will create a combined competitive advantage, provide growth opportunities, and offer greater choice for both customers and distributors," stated Rob Latter, Corporate VP of KPLP's AFH business.
About KP Tissue Inc.
KP Tissue Inc. (KPT) was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP. For more information visit www.kptissueinc.com.
About Kruger Products L.P.
Kruger Products L.P. is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products L.P. serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®' and White Swan®. In the U.S., Kruger Products L.P. manufactures the White Cloud® brand, as well as many private label products. Kruger Products L.P. has approximately 2,300 employees across North America and operates five FSC® CoC- certified mills (FSC® C104904), four of which are located in Canada and one in the US. For more information visit www.krugerproducts.ca.
SOURCE: KP Tissue Inc.
For further information:
General Counsel and Corporate Secretary
KP Tissue Inc.
Director of Investor Relations
KP Tissue Inc.