Investment firms buying Canada’s IPL for $94.2 million

Editor’s Note:  IPL is an RPA member company.  This story was posted on Plastics News – September 7

SAINT-DAMIEN, QUEBEC (Sept. 7, 2:15 p.m. ET) — Two investment firms are combining to buy Saint-Damien-based injection molder and extruder IPL Inc. for $6.50 per share, a deal that values the company at $94.2 million.

The companies announced the merger agreement on Sept. 7. It follows a 10-month review that IPL had announced on Dec. 10.

The buyers are Novacap Investments Inc. of Longueuil, Quebec, and Fonds de solidarite FTQ of Montreal.

According to IPL, stockholders representing about 67 percent of the outstanding voting shares have already agreed to support the deal, and IPL’s board of directors has approved the deal.

Ernst & Young Orenda Corporate Finance Inc. is serving as financial advisor to IPL.

IPL employs about 900 in its plants in Saint-Damien, Saint-Lazare and Lawrenceville, Quebec, and Edmundston, New Brunswick. The company serves the packaging, materials handling and environment sectors, plus a variety of custom molding.