Supremex Inc., a leading North American manufacturer and marketer of a broad range of stock and custom envelopes and growing provider of packaging and specialty products, announced that it has concluded the acquisition of Stuart Packaging Inc., a leading eco-friendly provider of premium quality folding carton packaging for the consumer market. This acquisition brings Supremex’ share of total revenues from packaging and specialty products to more than 22% and represents a key building block of its diversification and growth strategy. The transaction was concluded for total cash consideration of $17.5 million on a cash-free and debt-free basis. In addition, an amount of up to $2.1 million will be payable in 24 months subject to the realization of certain pre-established financial targets over that period.
“This acquisition significantly strengthens our position in the folding carton packaging market and further diversifies our revenue stream into a growing value-added market segment,” said Stewart Emerson, President and CEO of Supremex. “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.”
“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,” said Stuart Goldman, president of Stuart Packaging.
Founded in 1983 by Goldman, Stuart Packaging is a fully integrated folding carton manufacturer with annual revenues of approximately $18 million on a last-twelve-month basis. It employs approximately 65 people at its 68,000 square-feet state-of-the-art facility in Montreal, Quebec. Goldman, will assume a prominent role as President of Stuart Packaging Inc. – Folding Carton Division of Supremex and help the company expand its packaging product portfolio and further leverage its existing manufacturing and distribution platform in Canada and the U.S.
