The deal adds more than 100 B2B customers to the plant-based packaging products manufacturer
Good natured Products acquires Illinois-based Ex-Tech Plastics. (Credit: Tumisu from Pixabay)
Good natured Products has wrapped up its previously announced $14.1m acquisition of all the operating assets of US-based Ex-Tech Plastics and real estate assets owned by an associated company ETP.
The deal was signed earlier this month by the Canada-based good natured Products, which produces earth-friendly plant-based packaging products.
Established in 1982, Ex-Tech Plastics manufactures a range of plastic sheet and film products. These include extruded roll stock sheet for thermoformed packaging.
The company has seven different extrusion lines in a 75,000ft² facility in Richmond, Illinois.
Ex-Tech Plastics is said to cater to more than 100 customers operating in the retail, food, and medical packaging sectors. Its customers are located mainly in the Midwestern and Southwestern US.
The plastic sheet and film products manufacturer made revenue of nearly $25.8m last year.
Good natured Products CEO Paul Antoniadis said: “We’re very pleased to announce the completion of this Acquisition and welcome everyone at Ex-Tech to the good natured family.
“Ex-Tech’s trailing twelve-month revenue of approximately CAD33 million for the period ended December 31, 2020, will significantly accelerate our revenue growth for the back half of this calendar year.”
Through the acquisition, good natured Products will increase its customers count to nearly 600. It will give the company the added capacity to produce compostable and plant-based PET roll stock to support organic growth and in converting existing and future petroleum-based acquisition targets.
Besides, the deal gives good natured Products the potential for expanding capacity and manufacturing capability by adding a 40,000ft² facility and infrastructure at the existing facility. This will enable the company to support additional extrusion, thermoforming production lines, and warehousing.
Earlier this month, good natured Products launched compostable and microwavable plant-based packaging in Canada to address the country’s proposed ban on single-use take out containers.