Polyair, a private company, is a significant industry player in the protective packaging business with seven manufacturing facilities and a distribution center in North America. Polyair's primary products consist of bubble cushioning, foam, mailers and air pillow systems, which are complementary to IPG’s existing product offering. The acquisition will further strengthen IPG’s product bundle and bring immediate and additional scale of protective packaging solutions.
Both companies have been focused on the e-commerce segment as a growth engine, which is expected to be leveraged even further with this combination. In addition to these revenue synergies, IPG expects to benefit from certain operational cost synergies at Polyair. Upon closing, IPG expects to have a comprehensive offering of packaging and protective solutions with the capability to serve more customers in multiple geographic markets.
The deal is expected to close in Q3 2018 pending antitrust regulatory approval. Once completed, this acquisition will be the sixth strategic transaction that IPG has completed in the past four years.