Kruger Products L.P. (KPLP) announced it has completed the acquisition of all of Metro Paper Industries Inc.'s (MPI) Canadian tissue converting assets, located in Trenton, Ontario, and Scarborough, Ontario for a total cash consideration of $23.5 million. The deal includes Metro's entire North American Away-From-Home (AFH) customer base as well as a non-compete agreement. Metro's revenues in 2013 were approximately $65 million, split equally between the US and Canada.
"We are excited about the opportunity to add the complementary product lines to our growing AFHbusiness and this acquisition will immediately provide much needed additional capacity. As the AFHmarket leader in Canada, we are committed to building on our leadership position and driving our Company forward," said Mario Gosselin, chief executive officer, KPLP.
"This acquisition will reinforce our position with our valued North American customers. It will create a combined competitive advantage, provide growth opportunities, and offer greater choice for both customers and distributors," stated Rob Latter, corporate vice-president of KPLP's AFH business.
For more information visit www.kptissueinc.com or www.krugerproducts.ca.