United States

Intertape Polymer enters strategic partnership through Capstone

Thursday, 15 Jun 2017 08:00am EDT 

June 15 (Reuters) - Intertape Polymer Group Inc ::Intertape Polymer Group (IPG(R)) enters strategic partnership through Capstone(R).Agreement to acquire a majority stake in Capstone Polyweave Private Limited, a enterprise in India.Agreed to ultimately acquire a minimum of a 55% interest in capstone for a cash consideration of approximately $13 million.Majority of cash consideration of about $13 million is intended to be used by Capstone to partially finance construction of Greenfield manufacturing facility.Cash consideration of about $13 million will be financed with funds from IPG's revolving credit facility.Payments from co will be made in several tranches over a period of approximately six to twelve months.Construction of Greenfield facility is planned to begin in 2017 with commercial operations expected to commence in first half of 2019.Greenfield manufacturing facility is expected to cost approximately $30 million. 

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