Packaging and specialty products provider Supremex has acquired folding cartons supplier Staurt Packaging for $17.5m on a cash-free and debt-free basis.
Supremex will pay an additional amount of about $2.1m in two years based upon severalpre-established finacial targets during that period.
Stuart Packaging provides packaging and finishing solutions for companies operating in the cosmetics, nutraceutical, fragrance and pharmaceutical industries.
The company, which was established in 1983, generated annual revenues of about $18m on a last-twelve-month basis. It employs about 65 people at its 68,000ft² facility located in Montreal, Quebec.
Stuart Packaging president Staurt Goldman said: "We are delighted to be part of the Supremex family. With their domestic and U.S. footprint and complementary manufacturing processes, we are now in a position to grow our customer's share of wallet and accelerate our growth in new regional markets."
Goldman will serve as president of Stuart Packaging, which will be integrated into Supremex’s folding carton division.
He will help the company extend its packaging product portfolio and further use its existing manufacturing and distribution platform in Canada and the US.
Supremex said the acquisition boosts its packaging and specialty products shares revenue to more than 22% on an annual pro-forma basis.
Supremex CEO and president Stewart Emerson said :"The Company's sales excluding those from the Canadian envelope market are now in excess of 45% of total revenues on a pro-forma basis. This is critical to our long-term success as secular decline and margin pressure in the Canadian envelope market appear to be accelerating since the threat of a work stoppage at Canada Post in the summer of 2016."
Supremex operates facilities across seven provinces and three facilities in the US and employs about 845 people.
