The Acquisition wil be satisfied by payment of $12.5m in cash, the issuance of $833,467 in common shares of the Company
good natured Products announced that on December 1, 2020, through a wholly owned subsidiary, it has entered into a definitive agreement (the “Definitive Agreement”) to acquire IPF Holdings Inc. dba Integrated Packaging Films (“IPF”), a leading rollstock sheet extruder with over 20 years’ experience, for consideration of approximately $16.7 million (the “Acquisition”). The Acquisition wil be satisfied by payment of $12.5 million in cash, the issuance of $833,467 in common shares of the Company (“Common Shares”) at a deemed price of $0.47 per Common Share, and the issuance of a $3.3 million vendor take-back note, subject to customary working capital adjustments. All dollar figures in this release are in Canadian dollars unless noted otherwise.
Founded in 1997 by the Mechar family, IPF is located in Ayr, Ontario and is a manufacturer of high quality, rigid plastic sheets used to create a variety of products, including thermoformed packaging. IPF’s customers serve a diverse set of end markets, including electronics, retail, industrial, food and medical packaging. IPF currently serves nearly 100 customers from a dedicated 32,000 square foot leased facility on 2.9 acres of land. Customers are primarily located in the northeast and midwest United States and Eastern Canada.
“Building on our 50% revenue growth year to date through September 30, 2020, this transaction marks another significant milestone in the Company’s growth trajectory. The Acquisition diversifies and strengthens our industrial business group with the addition of nearly 100 customers, as well as entry into the medical and electronic industrial rollstock segment, and contributes approximately $17.0 million in annual sales,” said Paul Antoniadis, CEO of good natured®. “The Acquisition of IPF strategically complements our recent acquisition of Shepherd Thermoforming and Packaging in May 2020 and represents good natured®’s ability to deliver on our acquisition strategy that underpins our organic growth business model.”
Paul added: “We’re delighted to welcome the Mechar family and the entire IPF team to the good natured team! We share a common vision to be leaders in the development and adoption of sustainable, planet-friendly packaging solutions in North America, so the combination of our collective expertise, people and manufacturing capability further positions the Company to execute against this ambition.”
“We are very excited to partner with good natured® and continue the legacy of our business that was started in 1997,” said Bill Mechar, President and Founder of IPF. Co-owner Mark Faber, former CEO of CM Packaging Group, Inc. added: “Joining together with good natured is a strong strategic fit and will accelerate IPF’s ability to meet the growing demand for plant-based products and broadens the product offering to our existing thermoforming customers.”
Source: Company Press Release