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(LOGO - Intertape Polymer Group Inc.)
August 28, 2000 NYSE SYMBOL: ITP
TSE SYMBOL: ITP
INTERTAPE POLYMER GROUP INC.
FURTHER EXPANDS INTO RETAIL MARKET
AND
ACQUIRES UNITED TAPE COMPANY
Montreal, Quebec, Canada, August 28, 2000 -- Intertape Polymer Group Inc. (IPG)
today announced that it is seeking Regulatory Approval regarding the purchase of
substantially all the assets of Olympian Tape Sales, Inc., currently doing
business as United Tape Company (United Tape).
United Tape is a supplier of a wide range of packaging products to the retail
market. The twenty-nine year old company has operations in Georgia and
California with 1999 sales of approximately US$45 million.
Detailed terms of the purchase agreement were not disclosed. However, the
acquisition funding will involve both cash derived from working capital and the
issuance of US$4 million worth of common shares from treasury; as well as the
assumption of certain debts.
According to Melbourne F. Yull, Intertape Polymer Group Inc.'s Chairman and
Chief Executive Officer, "IPG has been a relatively small player in the $500
million retail market. Recent acquisitions and new product developments have
broadened IPG's product offering to the extent that we can now offer a more
complete product line. The purchase of United Tape will assist IPG in gaining
faster access to the market as well as provide economies of scale and accelerate
IPG's growth within the retail trade."
"United Tape has a strong reputation and customer base supported by first class
management information and warehouse systems. United Tape will remain a stand
alone operation under current management", noted Mr. Yull.
Andrew M. Archibald, C.A., IPG's Chief Financial Officer stated that "In
addition to the strategic fit of this acquisition, IPG will immediately begin to
supply between US$10 to $15 million worth of products annually that United Tape
currently purchases elsewhere. The combined retail sales of IPG and United Tape
will provide the critical mass to effectively grow in this arena, and product
rationalizations will provide additional efficiencies."
Finally, Mr. Yull stated: "Most acquisitions do not provide immediate new
volume, cost savings and excellent management. The acquisition of United Tape
gives IPG all of the above without enduring both lengthy and costly integration
steps to obtain these results."
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(LOGO - Intertape Polymer Group Inc.)
Intertape Polymer Group Inc. develops, manufactures and markets a wide variety
of specialized polyolefin plastic and paper based packaging products and systems
for industrial and retail use. The Company is based in Montreal, Quebec and
Sarasota, Florida. With the completion of the acquisition, IPG will maintain
facilities in eighteen North American and one European location.
THIS RELEASE CONTAINS STATEMENTS THAT ARE FORWARD-LOOKING WITHIN THE
MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933 AND SECTION 21E OF THE
SECURITIES EXCHANGE ACT OF 1934. FORWARD-LOOKING STATEMENTS INVOLVE KNOWN
AND UNKNOWN RISKS AND UNCERTAINTIES, WHICH MAY CAUSE THE COMPANY'S ACTUAL
RESULTS IN FUTURE PERIODS TO DIFFER MATERIALLY FROM FORECASTED RESULTS OR
FORWARD-LOOKING STATEMENTS. THOSE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE
NOT LIMITED TO:
-- RISKS ASSOCIATED WITH PRICING, VOLUME AND CONTINUED STRENGTH OF MARKETS
WHERE THE COMPANY'S PRODUCTS ARE SOLD, AND THE TIMING AND ACCEPTANCE OF NEW
PRODUCT OFFERINGS.
-- ACTIONS OF COMPETITORS AS ARE DESCRIBED IN THE COMPANY'S FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION (SEC) OVER THE LAST TWELVE MONTHS.
-- THE COMPANY'S ABILITY TO SUCCESSFULLY INTEGRATE THE OPERATIONS AND
INFORMATION SYSTEMS OF ACQUIRED COMPANIES WITH ITS EXISTING OPERATIONS, AND
INFORMATION SYSTEM, INCLUDING RISKS AND UNCERTAINTIES RELATING TO ITS
ABILITY TO ACHIEVE PROJECTED EARNINGS ESTIMATES, ACHIEVE ADMINISTRATIVE AND
OPERATING COST SAVINGS AND ANTICIPATE SYNERGIES.
-- THE EFFECT OF COMPETITION AND RAW MATERIAL PRICING ON THE COMPANY'S ABILITY
TO MAINTAIN MARGINS ON EXISTING OR ACQUIRED OPERATIONS.
THE COMPANY DOES NOT UNDERTAKE TO PUBLICLY UPDATE OR REVISE ITS
FORWARD-LOOKING STATEMENTS EVEN IF EXPERIENCE OR FUTURE CHANGES MAKE IT
CLEAR THAT ANY PROJECTED RESULTS EXPRESSED OR IMPLIED THEREIN WILL NOT BE
REALIZED.
FOR FURTHER INFORMATION CONTACT: Melbourne F. Yull
Chairman and Chief Executive Officer
Intertape Polymer Group Inc.
Tel: (514) 731-0731
Email: [email protected]
Web Site: www.intertapepolymer.com
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