Transcontinental Inc. acquires the business of Coveris Americas and completes subscription receipts offering

On May 1, 2018, Transcontinental Inc. (TSX: TCL.A), a leader in flexible packaging in North America and Canada’s largest printer, completed the transformational acquisition of the business of Coveris Americas, a leading flexible packaging business based in Chicago, Illinois, for a purchase price of approximately $1.72 billion, subject to customary purchase price adjustments. 

To finance part of the purchase price for the acquisition, Transcontinental completed on April 20, 2018, a $287.5 million bought-deal public offering of subscription receipts, inclusive of the exercise in full of the $37.5 million over-allotment option, led by CIBC Capital Markets and Scotiabank, and entered into new credit facilities on April 25, 2018, in the amount of $400 million and US$750 million. 

Transcontinental Inc. was represented in-house by a legal team led by Christine Desaulniers, Isabelle Lamarre and Viktorya Aksoy, in Canada by Stikeman Elliott LLP with a team led by Sidney Horn, Pierre-Yves Leduc, Vanessa Coiteux, Jérémie Ste-Marie, Gabrielle Daoust and Luke Sinclair (M&A and securities), Sterling Dietze, Serge Levy and John Simpson (banking), and Franco Gadoury and Nicholas Grenier (tax), and in the United States by Morgan, Lewis & Bockius LLP with a team led by Richard Aldridge, Barbara Melby, Andrew Mariniello, Karen Butcher, Michael Baxter, David Miller and Michelle Catchur (M&A), David Sirignano and Leland Benton (securities), Paul Gordon and Benjamin Weiss (tax) and Harry Robins and Andrew Wellin (regulatory/antitrust). 

Coveris Americas was represented by Kirkland & Ellis LLP with a team led by corporate partners Douglas Gessner, Jeremy Liss, Matthew Arenson and Jessica Sicsu. Coveris was represented in Canada by DLA Piper (Canada) LLP with a team led by corporate and securities partner Robert Fonn and including Nicole Kapos (corporate), Kevin Fritz (tax), Stephen Morris (real estate) and Dave Spratley (IP). 

The underwriters in the bought-deal public offering and the lenders under the new credit facilities were represented by McCarthy Tétrault LLP with a team led by Patrick Boucher, Fraser Bourne, Isabelle Nazon and Konstantin Sobolevski (securities) and Michel Deschamps, Richard O’Doherty and Étienne Guertin (banking).


Christine Desaulniers Isabelle Lamarre Viktorya Aksoy Sidney M. Horn Pierre-Yves Leduc Sterling H. Dietze Serge Levy Patrick Boucher Fraser Bourne Michel Deschamps Richard O'Doherty