Supremex to acquire substantially all of the assets of Royal Envelope and Envelope Royal
Supremex announces the acquisition of Royal Envelope. (Credit: Gerd Altmann from Pixabay)
Supremex, a North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, announced the acquisition of substantially all of the assets of Royal Envelope and Envelope Royal, a Eastern Canada based envelope manufacturer and printer, for a total purchase price of $27.4 million.
“The acquisition of Royal Envelope allows us to optimize the operations cost-base in Eastern Canada and enhance cash-flow generation capacity, which in turn will provide us with the necessary means and time to continue to diversify into packaging,” said Stewart Emerson, President and CEO of Supremex. “This acquisition also provides the necessary capacity and capabilities to support our envelope growth strategy in the U.S.”
“We are excited to be joining the Supremex group of companies. In doing so, we are better equipped to face our industry’s underlying trends and can continue to offer the same level of service and quality products that our customers have been accustomed to. In addition, we are joining a strong organization that will strategically grow our activities into new and diversified markets and allow us to bring new value-added products to our customers” said Lou Tucci, Co-founder and President of Royal Envelope Ltd., who will stay with the combined entity as President, Royal Envelope. “I would also like to thank all our dedicated employees that contributed to making this venture a success and welcome this opportunity to create more value for all our stakeholders.”
Founded in 1989 by Peter Bowles and Lou Tucci, Royal Envelope generated approximately $30 million of revenue during their most recent fiscal year mainly from the direct sale of envelopes and printing services. Royal Envelope employs approximately 135 people at its two primary facilities located in Concord (Ontario) and LaSalle (Quebec).
Source: Company Press Release