VANCOUVER, BC, Aug. 9, 2021 /PRNewswire/ - Wildpack Beverage Inc. (TSX-V: CANS) ("Wildpack" or the "Company") is pleased to announce that it has entered into a binding agreement to purchase, through a wholly owned subsidiary, all of the issued and outstanding securities of the capital of Vertical Distilling, LLC ("Vertical"), an established aluminum can filler, for cash consideration of US$4,500,000, subject to certain holdbacks (the "Acquisition").
Vertical, a can filling company with a history of cash flow positive operations, is the leading filler in Colorado and the surrounding states, which is an important region in the middle market beverage industry and integral to Wildpack's growth strategy. Vertical comes with an established sales force, operational expertise and entrenched customers. Wildpack anticipates that there will be numerous synergistic opportunities arising from the Acquisition, including the addition of more shifts, the removal of throughput pinch points with light capital upgrades and the installation of new capabilities. These synergies will be unlocked pursuant to Wildpack's standard ramp-up strategy following closing.
Thomas Walker, Chief Growth Officer commented "We have successfully completed two acquisitions pursuant to our previously announced letters of intent and are excited to see the third deal move to the definitive agreement stage. The completion of consecutive acquisitions and the signing of this definitive agreement demonstrates our ability to efficiently discover, assess and close on targets that fit our strategic business plan. We are continuing to build our M&A team and believe the success of our acquisition strategy will be a critical aspect of our overall business strategy."
"Every facility we add to our portfolio further solidifies our standing as a leading middle market beverage manufacturer and provides us with an economic moat. We have been effectively leveraging our near-term aluminum can advantage into our long-term facility network advantage ahead of our schedule and accretion targets. Our M&A, integration and upgrade teams are efficiently carrying out our growth strategy. We are one additional facility acquisition away from achieving our 2021 facility goals" added Mitch Barnard, CEO.
Subject to certain conditions, Wildpack anticipates that the Acquisition will be completed prior to the end of August, 2021, at which time the Company's ramp-up strategy will commence.
WILDPACK BEVERAGE INC.
Per: "Mitch Barnard"
Mitch Barnard
Chief Executive Officer and Director
About Wildpack
Wildpack is engaged in beverage manufacturing and packaging, operating in the middle market by providing can filling and decorating services to brands throughout the United States. Wildpack currently operates indirectly through its wholly owned subsidiaries and out of facilities in Baltimore, Maryland, Sacramento, California and Las Vegas, Nevada. Wildpack commenced trading on May 19, 2021 on the TSX Venture Exchange under the symbol "CANS.V".
Forward-Looking Statements
This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, without limitation, our statements related to: the completion of the Acquisition; the impact of the Acquisition on the Company's business and its growth plans; and the Company's growth and acquisition plans in general. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Wildpack's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of Wildpack's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Transaction, including: that Wildpack will not be able to complete the Acquisition on the anticipated timeline, if at all; that the actual impact of the Acquisition on Wildpack's business and growth strategy will not be as currently anticipated; that Wildpack's other assumptions in making forward-looking statements may prove to be incorrect; adverse market conditions; risks inherent in the beverage manufacturing and packaging sector in general; that future results may vary from historical results; and competition in the markets where Wildpack operates. Except as required by securities law, Wildpack does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Wildpack Beverage Inc.
