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Bullboard - Stock Discussion Forum Supremex Inc T.SXP

Alternate Symbol(s):  SUMXF

Supremex Inc. is a Canada-based company, which manufactures and markets envelopes and provides paper-based packaging solutions designed to the specifications of national and multinational corporations, direct mailers, resellers, government entities, small-medium enterprises (SMEs) and solutions providers. The Company operates in two reporting segments: the manufacturing and sale of envelopes... see more

TSX:SXP - Post Discussion

Supremex Inc > SXP buys Vista Graphic ..no price or details in news release
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Post by hawkowl1 on Mar 09, 2021 7:44am

SXP buys Vista Graphic ..no price or details in news release

Supremex Announces Expansion into US Packaging Market to Support E-Commerce Packaging Growth

Canada NewsWire

MONTREALMarch 9, 2021 /CNW Telbec/ - 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, today announces the bolt-on acquisition of Vista Graphic Communications, LLC ("Vista"), an Indianapolis, Indiana based provider of print and folding carton packaging.

"This turn-key operation brings us closer to our growing e-commerce customer base in the U.S. and provides us with much needed print and converting capacity to meet existing and growing demand for our customized patent-protected e-commerce packaging solutions," said Stewart Emerson, President & CEO of Supremex. "Vista is strategically located, employs a skilled workforce, and with modest planned equipment additions we can quickly build a fully-integrated e-commerce packaging hub."

Vista Graphic Communications, LLC ("Vista") is a printing and packaging solutions manufacturer focused on highly customized folding cartons and micro flute packaging. The Company was founded by Tim Rolfsen in 1985, runs two full production lines, including 40" litho presses, die-cutting and gluing, and serves clients primarily in the medical, dental and publishing markets. 

Comment by Capharnaum on Mar 09, 2021 8:41am
This is probably why the CFO left, he likely disagreed with the purchase. 
Comment by hawkowl1 on Mar 09, 2021 9:26am
Market surveillance should halt SXP due to non disclosure of financial terms of this acquisition.. 
Comment by hawkowl1 on Mar 09, 2021 9:56am
Looks like the market likes news.Only the ones with inside information. I would have liked to add but not blindly without more details of what price they paid..etc.
Comment by Capharnaum on Mar 09, 2021 12:04pm
Wondering as well, although it's a good step in the direction they want to go, provided the cost of the purchase doesn't put the company at risk. I'm wondering if there's a financing attached to the purchase.
Comment by bucheroncapital on Mar 09, 2021 12:27pm
True we would need figures and numbers here! But the purchase is very pertient and non dilutive now show us the numbers !
Comment by hawkowl1 on Mar 09, 2021 12:33pm
Would it be possible the owners of Vista Graphic accepted an all share deal from SXP? Sweet talked into it by promise of generous dividend in near future?  I can dream cant I?<>
Comment by Capharnaum on Mar 09, 2021 12:51pm
I think that may be the case, but it could put downward pressure on the share price if they decide to monetize it. Even if they did take such an offer, it would be nice to know the dilution figure (provided that's the case).
Comment by bucheroncapital on Mar 09, 2021 12:51pm
Don't know maybe ! But just visited the Vista Site and they are active in 6 segments pretty cool stuf 
Comment by mjh9413 on Mar 09, 2021 3:37pm
No details is a bad way to start. Be good to know some financial performance and terms. As to the Vista website, for a company in the business for decades it seems pretty devoid off real detail and scant product definition. No pictures of prodn facility or employees smiling!! Not just unexciting but actually I don't see a real fit so scary
Comment by bucheroncapital on Mar 09, 2021 4:01pm
Give them a few QT so we can see effects of synergies(if so) 
Comment by bucheroncapital on Mar 09, 2021 6:43pm
After visiting the site I notice they have a pretty local portfolio (customers in the Indy area), so SXP could bring a lot more customers to Vista services - It looks like a small acquistion (looking at buliding and the parking lot ... what else can I check , lol )  but it could bring a lot more turn key serices to SXP - GLTA
Comment by hawkowl1 on Mar 09, 2021 7:23pm
60,000 sq ft warehouse and strategic location..Stewart Emerson knows  an opportunity when he sees it. Wish he disclosed more details..but as other posters have noted..its a small tuck in with significant potential by being part of the Supremex organization "This turn-key operation brings us closer to our growing e-commerce customer base in the U.S. and provides us with much needed print ...more  
Comment by bucheroncapital on Mar 10, 2021 8:35am
Comment by DudeRancher1953 on Mar 09, 2021 6:45pm
Not sure how reliable the Manta website info is but it lists the company as having 18 employees and revenues of $5 million which I find strange for a company that has been around so long.
Comment by nic_jordan on Mar 11, 2021 10:08am
This might bring some light to the subject of whether the price needs to be disclosed, although it is from a U.S. legal perspective (I would assume that in Canada it would be somewhat similar...) : For a public company, when does the size of an acquisition have to be disclosed publicly? - Quora I suppose that the price is not high enough to have to be disclosed now ? Just my 2 cents... Cheers ...more  
Comment by bucheroncapital on Mar 11, 2021 11:31am
Good Point ! Any way the synergies are obvious and the stock is moving foward a good acquisiton is a better capital allocation then a dividend at this point , GLTA !
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