Intertape Polymer Group Acquires Spinnaker's SETco, Central Products

Intertape Polymer Group Inc. (IPG) (Montreal) has joined into a definitive agreement with Spinnaker Industries Inc. for the purchase of all the business assets of its subsidiary, Spinnaker Electrical Tape Co. (SETco) and all the outstanding shares of another subsidiary, Central Products Co.(CPC).

These transactions are subject to regulatory approval, which will govern their closing dates.

SETco manufactures an extensive line of pressure-sensitive industrial electrical tapes, while CPC manufactures both pressure- sensitive and water-activated carton sealing tapes, sold primarily to industrial distributors.

Pursuant to the agreement, Spinnaker Industries will receive from IPG approximately US$105 million and 300,000 seven-year warrants to purchase Intertape common shares at a price of US$35.00. IPG will draw down on certain credit facilities to finance the acquisition.

Melbourne F. Yull, Intertape Polymer Group Inc.'s chairman and CEO, said, "In addition to cost reductions in both water-activated and pressure-sensitive carton sealing tapes, CPC's Brighton, CO, facility will provide IPG the needed capacity in hot-melt coating and solvent rubber products to form a basis for continued growth in these products."