The Colorado Facility is expected to become a central hub for Wildpack and its customers as it Wildpack continues to execute on the strategic business plan of building a network of facilities within one-day shipping range of all major distribution centers in the middle market beverage industry
Wildpack Closes Colorado Acquisition and Completes Baltimore Decorating Line Installation. (Credit: Gerd Altmann from Pixabay)
Wildpack Beverage Inc. (TSX-V: CANS) (“Wildpack” or the “Company”) is pleased to announce that, further to its news release dated August 9, 2021, it has closed the acquisition of all of the issued and outstanding securities of Vertical Distilling, LLC (the “Colorado Facility“) in exchange for cash consideration of US$4.5 million.
On the date of acquisition, the Colorado Facility was operating on a cashflow positive basis with only one shift. Wildpack has developed an integration and utilization step-up plan that involves completing the following milestones in stages by March, 2022: (i) shift optimization to achieve more profitable gallons at the Colorado Facility; (ii) absorbing the Colorado Facility’s pre-existing back office and supply chain into Wildpack’s ecosystem; and (iii) broadening the Colorado Facility’s service offering.
The Colorado Facility is expected to become a central hub for Wildpack and its customers as it Wildpack continues to execute on the strategic business plan of building a network of facilities within one-day shipping range of all major distribution centers in the middle market beverage industry.
“Colorado is a key geography in the middle market beverage industry for both customers and vendors. Establishing a presence there not only furthers our strategic business objectives as it relates to decreasing shipping cost and complexity for customers, but it also places us as neighbors to several of our key vendors. Strengthening these relationships is expected to have a positive impact on our business as we continue to accumulate market share in spaces that we operate.” said Thomas Walker, Chief Growth Officer.
Also, Wildpack has completed the installation of an additional brand-new decorating line housed within its pre-existing facility in Baltimore, Maryland to meet previously unmet demand. Once fully ramped in accordance with Wildpack’s standard step-up plan, the Baltimore facility is anticipated to achieve throughput in excess of 2 million cans per month.
“We have developed a strong team dedicated to internal upgrades of existing lines and the installation of new ones within our operation. The efficiency with which this line was built and the lack of disruption to existing ongoing operations during its construction validates our ability to make strategic additions to our facilities beyond upgrading existing assets.” said Chuck Zadlo, Chief Operating Officer.
Source: Company Press Release