Synergistic tuck-in addition to folding carton operations
Supremex Inc. (“Supremex” or the “Company”) (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, announced today the acquisition of the assets of Graf-Pak Inc. (“Graf-Pak”), a provider of folding carton packaging solutions to a variety of commercial markets. The transaction was concluded for a total consideration of approximately $6.0 million, on a cash-free and debt-free basis, subject to customary adjustments, financed through the Company’s existing credit facility.
Founded in 1995 and employing close to 25 people, Graf-Pak operates a facility located in Pointe-Claire, Québec, near the Company’s primary folding carton plant in Lachine. Its offering is comprised primarily of the printing and manufacturing of folding carton packaging products, mainly for the food and cosmetics markets. For its last fiscal year, Graf-Pak generated sales of approximately $6.7 million.
“The acquisition of Graf-Pak is a perfect fit with our existing folding carton operations in Quebec,” said Stewart Emerson, President and CEO of Supremex. “Graf-Pak’s well-established business in the food and cosmetics sectors will provide further critical mass in these two important growth vectors for Supremex. Its state-of-the-art equipment ensures speed, efficiency, accuracy and superior quality at every step of the manufacturing process. Given its proximity, we intend to integrate Graf-Pak’s operations into our Lachine hub over the next 90 days and we expect this tuck-in operation to rapidly yield synergies within our folding carton group.”
Source: Company Press Release