Publicly traded Intertape Polymer Group has agreed to be acquired by Clearlake Capital Group in an all-cash transaction valued at approximately $2.6 billion.
Intertape (TSX: ITP) is a developer and manufacturer of paper and film-based pressure-sensitive and water-activated tapes, stretch and shrink films, protective packaging, woven and non-woven products, and dispensing machinery.
Intertape, led by CEO Greg Yull, is headquartered in Montreal with 4,100 employees and operations in 34 locations, including 22 manufacturing facilities in North America, 5 in Asia, and 2 in Europe.
For the trailing twelve months, Intertape had revenues of $1.5 billion and an adjusted EBITDA of $188 million. Based on the valuation of $2.6 billion, this equates to an EBITDA valuation multiple of 13.8x.
“We believe this transaction is a great next step in the evolution of our business as Clearlake has strong industry knowledge in the protective packaging and e-commerce ecosystems,” said Mr. Yull. “Clearlake provides us the operational and financial resources to accelerate our acquisition strategy, as well as organic growth opportunities such as investing in product innovation, sustainability, and market expansion.”
“We have a long-standing respect and admiration for Greg and his team as they have built on Intertape’s position as a key packaging and protective solutions provider to a diverse set of attractive and growing end-markets,” said José Feliciano, a co-founder and managing partner at Clearlake. “We believe Intertape’s customer-centric and sustainability-oriented approach and capabilities position the company well to capitalize on growth within its target end markets, and the addition of Intertape to our portfolio highlights our thesis that long-term consumer trends favor providers focused on sustainability and innovation.”
Clearlake invests in industrials and energy, software and technology-enabled services, and consumer sectors. The firm was co-founded by Mr. Feliciano and Behdad Eghbali in 2006 and is headquartered in Santa Monica, California with an additional office in Dallas, Texas. In April 2020, Clearlake held a hard cap and oversubscribed final close of its sixth private equity fund, Clearlake Capital Partners VI LP, with more than $7 billion in commitments.
Morgan Stanley & Co. is the financial advisor to Intertape, and National Bank Financial is the financial advisor to the Intertape board of directors.
Credit Suisse, Deutsche Bank and Wells Fargo are providing committed financing to support Clearlake’s buy of Intertape.
© 2022 Private Equity Professional | March 10, 2022
