Transcontinental turns to plastic packaging to boost business


Transcontinental Inc. is a Montreal-based printing company specializes in print and digital media, the production of magazines, newspapers, and more. But like so many companies in the space, the company is experiencing declines in traditional printing and soft advertising in its media division. The company's revenue decreased by 5.0% in the first quarter of 2014, from $525.6 to $499.3 million, primarily due to the soft advertising market, which affected both of its operating sectors. In the printing sector, the volume in its marketing products and magazine operations decreased. In the media sector, the soft advertising market continued to impact its local solutions, magazines and interactive marketing solutions.

So Transcontinental decided to make a bold move: acquire a plastic packaging company. The company will buy the assets of Capri Packaging, a supplier of printed flexible packaging, located in Clinton, MO, for a purchase price of $133 million. Capri Packaging is a division of Schreiber Foods Inc., a $5 billion employee-owned dairy company, located in Green Bay, WI. Capri Packaging offers flexible film structures (for example, the plastic film that's wrapped around blocks of cheese or the bags that shredded cheese comes in) for products worldwide, according to the company website. Capri Packaging says it doesn't just offer packaging for dairy as the company develops packaging for everything from disposable razors to coffee to wet wipes.

TC Transcontinental will gain two facilities in Clinton, which employ close to 200 people, and generate approximately $72 million in annual revenue. As part of the transaction, the seller, Schreiber Foods has signed a 10-year agreement to secure Capri Packaging as a strategic supplier of printed flexible packaging, which represents about 75% of Capri's total revenue
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