One51, CDPQ, Fonds owned IPL to acquire Macro Plastics for US $150M

IPL Inc., a portfolio company of One51 plc, Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ, has agreed to acquire Macro Plastics, Inc. for US $150 million.

The acquisition is being funded through a combination of IPL senior bank facilities and additional equity from One51, CDPQ, Fonds de solidarité. Bank facilities are provided by a syndicate of nine leading financial institutions with National Bank of Canada, acting as lead arranger.

IPL is owned by One51 (67%), Caisse de dépôt et placement du Québec (22%) and Fonds de solidarité FTQ (11%).

The acquisition is expected to close by mid-June 2017 following receipt of US regulatory approval.

Fairfield, California based Macro Plastics Inc. is the largest manufacturer of rigid plastic bulk bins worldwide and is a market leader in providing value-added rigid plastic bulk packaging solutions to the agricultural and automotive sectors, and operates some of the largest bulk machines in North America.

Macro operates three manufacturing facilities in California, Washington and Kentucky with dedicated design and testing capabilities together with an established international sales network.

Macro offers a significant footprint for IPL’s expansion in the strategically important US market and the growing South American market. Macro’s product portfolio is complementary to IPL’s existing business and is a significant step in One51’s strategy to become a leading global player in the rigid plastics market. In particular, Macro provides IPL with a significant presence on the US West Coast, a key growth target of IPL.

“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. The acquisition also expands our geographic reach, product portfolio and customer base across the growing North and South-American markets,” said Luis de Jesus, President and CEO of IPL.

“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, Québec at CDPQ.

“The acquisition of Macro Plastics is another step that will reinforce IPL’s position as a leader in the North American plastics industry. This transaction demonstrates that both innovation and strategic acquisitions are key to helping manufacturers such as IPL ensure their continued growth,” said Janie Béïque, Senior Vice-President, Natural Resources, Industries, Entertainment and Consumer Goods, Fonds de solidarité FTQ.

Established in 1939, IPL is a leading North American manufacturer of injected moulded plastic products. Operating from six manufacturing plants located in Saint Damien (Canada), Edmundston (Canada), Missouri (USA), Ohio (USA), Georgia (USA) and Minnesota (USA), IPL designs and manufactures products for the food and bulk packaging, environment and material handling sectors in Canada and the United States.

photo credit: Macro Plastics