Plastics packaging group Coveris (Chicago, Illinois / USA; www.coveris.com) is divesting its Americas activities as planned (see Plasteurope.com of 24.11.2017). Worth USD 1.32 bn (EUR 1.08 bn), the Americas business will be sold to TC Transcontinental (Montréal, Québec / Canada; www.tctranscontinental.com), a manufacturer of print products and flexible packaging. The deal is still subject to regulatory approval and is expected to close in mid-2018.

"This sale will enable us to focus on our operations in Europe, where we are one of the largest players in the flexibles and rigid packaging market," says Coveris CEO Jakob Mosser. The proceeds from the Americas sale are expected to be used for the company's existing debt. Coveris Americas has 21 manufacturing facilities and 3,100 employees. For the year ended 31 December 2017, the business generated USD 966m in sales and USD 128m in adjusted EBITDA.

After the sale, Coveris' remaining divisions will be EMEA, UK Food & Consumer as well as the apparently also up-for-sale Rigid segment. The group comprises 44 plants in 14 countries and employs more than 8,000 people. Pro-forma sales were EUR 1.4 bn and adjusted EBITDA amounted to EUR 132.4m in 2017.

TC Transcontinental, which has been in the packaging market since 2014, has approximately 6,500 employees, and generated sales of CAD 2.02 bn (EUR 1.27 bn) in the last fiscal year ending 29 October 2017. Its packaging division generated revenue of CAD 308m, and operates six plants in North America employing 900 people.