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Highlights
- Intertape Polymer Group (TSX:ITP), also known as IPG, has gained massive attention on the stock markets amid new developments.
- Its stocks jumped as high as 77 per cent to hit a new 52-week high of US$ 39.50 during the session on Tuesday, March 8.
- The C$ 2-billion market cap firm saw its top line climb 22.5 per cent year-over-year (YoY) to US$ 395.6 million in Q3 FY2021.
Intertape Polymer Group (TSX:ITP), also known as IPG, has gained massive attention on the stock markets amid new developments.
Its stocks jumped as high as 77 per cent to hit a new 52-week high of US$ 39.50 during the session on Tuesday, March 8, on the heels of an acquisition announcement.
Who is going to acquire Intertape Polymer (TSX: ITP)?
On Tuesday morning, the packaging products company said it is set to be acquired by Clearlake Capital Group LP, an integrated investment firm.
According to the agreement, Clearlake will buy outstanding IPG shares for C$ 40.50 apiece in all-cash transactions, including net debt, totalling US$ 2.6 billion. This reflects a premium of about 82 per cent from C$ 22.28, i.e., the closing price of IPG stock on March 7.
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Now, let us look at its overall performance.
Intertape Polymer's financial performance in Q3 FY2021
The C$ 2-billion market cap firm saw its top line climb 22.5 per cent year-over-year (YoY) to US$ 395.6 million in Q3 FY2021, mainly driven by high selling prices of its protective packaging products due to rise in costs of raw materials and freight charges.
Its net income, however, plunged by 1.4 million YoY to US$ 25.3 million in the third quarter of fiscal 2021.
The Quebec-based company is scheduled to announce its fourth-quarter and annual results on Tuesday, March 15.
Intertape's stock performance
Intertape stock closed higher at C$ 39.26, up by over 76 per cent on Tuesday, with 5.2 million shares exchanging hands during the session.
Bottomline
Intertape Polymer Group, as of now, is a publicly-traded company and will operate privately upon completing this acquisition deal.
The company also believes that this deal with Clearlake will help it evolve its protective packaging business and expand its e-commerce footprints.
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