Transcontinental Inc said it would buy the U.S. packaging business of Coveris Holdings S.A. for $1.32 billion (C$1.70 billion) as the Canadian publisher looks to join other top North American companies in the flexible packaging space.
The deal almost matched Transcontinental’s $1.52 billion market value as of Thursday’s close and sent its shares up as much as 16 percent to a near 5-month high of C$29.49 on Monday.
The plastics and packaging industry has been consolidating rapidly to cash in on the rising demand from ecommerce businesses, food and meat producers and automotive sector.
