Good Natured Products also acquired Shepherd’s assets including machinery, moulds and a 42,000ft² manufacturing facility
Good Natured Products has closed the acquisition of Canadian thermoformer, Shepherd Thermoforming & Packaging, for C$9.5m ($6m).
As per the terms of the deal signed in April 2020, Good Natured Products has acquired Shepherd’s real estate.
Shepherd assets include machinery, moulds and a 42,000ft² manufacturing facility located on 2.31 acres of land in the Greater Toronto Area of Brampton, Ontario.
Good Natured CEO Paul Antoniadis said: “We’re very pleased to announce the completion of this acquisition, and welcome everyone at Shepherd to the Good Natured family.
“Shepherd grows our customer base with an addition of over 75 customers, our capabilities, and our market reach into Eastern Canada and the Northeast United States.”
Good Natured used BDC mortgage loan to fund the transaction
To fund the transaction, Good Natured Products used a mix of C$6m ($4.2m) BDC bank mortgage loan and C$1.35m ($0.95m) in a vendor-take back promissory note.
The firm financed the remaining by a drawdown of its previously announced June 2019 BDC credit facility.
BDC Cleantech practice director Jahangir Bhatti said: “We are delighted to support an acquisition that marks a key milestone in Good Natured’s history, as well as its contribution to the adoption of plant-based plastics.
“With its wide assortment of products and strategic Eastern Canada location, Shepherd is in good stance to fuel good natured’s already robust growth.”
The deal is a part of SmartPac’s efforts to transition some of its plastic food and beverage packaging to plant-based alternatives.