VANCOUVER, BC, Oct. 6, 2021 /PRNewswire/ - Wildpack Beverage Inc. (TSXV: CANS) ("Wildpack" or the "Company") is pleased to provide an update on the progress of its corporate and growth initiatives, expanded leadership and optimization projects.
Highlights
- Quarterly operational guidance will be provided prior to the end of 2021, as our production platform continues to expand
- Integration of newly acquired Georgia and Colorado operations are on schedule and on budget
- Wildpack continues to advance its 2021 M&A targets, as part of its buy and build strategy, with active negotiations on North Central target(s) that are progressing to definitive agreements
- The 2022 M&A pipeline is already full, giving Wildpack ample opportunity to scale to its desired 12 facility footprint by the end of next year
- Wildpack has hired 6 senior leaders from market leading businesses which has balanced our M&A heavy team with operational and execution excellence
- Sara Coyle has been added to the Board of Directors and now Chairs the M&A/Finance Committee
- Baltimore and Las Vegas have each added a decorating line
- The new Las Vegas Printer is on schedule to be operational in 2021Q4, further integrating in-house services
- Major strides in business process and innovative standard operating procedures have been made by the new operations leadership
- 2021Q3 results will be released on November 29, 2021 and management will conduct our earnings call on November 30, 2021 with the link available on our website (investor.wildpackbev.com)
Corporate Update
Throughout the third quarter the operational side of Wildpack's growth strategy has come into greater focus. To that end, the Company will provide forward guidance on planned utilization by quarter prior to the end of the year 2021.
M&A Growth Strategy
In July, Wildpack announced the acquisition of Georgia based CraftPac, LLC, followed closely by the August acquisition of Colorado based Vertical Distilling, LLC, the results of two of three letters of intent (see: Press Release dated May 26, 2021). Georgia and Colorado represent key geographical targets as Wildpack continues to pursue a network solution to the fragmentation mid-market beverage brands face as they pursue national distribution. The third and fourth Targets are progressing well through the due diligence process with the former having commenced negotiation towards a definitive agreement.
The pipeline for 2022 targets is vast and has similar characteristics to those encountered in 2021, albeit upsized. Specifically, Wildpack is focused on fillers, decorators, and printers in the United States. All of the deals being considered are proprietary with little or no competition, have a long history of positive cash flow, and are located in key geographic regions in accordance with Wildpack's strategic business plan.
Since inception, Wildpack has been able to successfully purchase businesses in increasing size over the course of its four total acquisitions – approximately doubling the acquisition size in each successive deal. With the targets available to Wildpack, Management anticipates this trend to continue.
Thomas Walker, Chief Growth Officer commented: "M&A remains Wildpack's number one catalyst. Our business model is funneling a steady stream of acquisitions to achieve the scale required to benefit fully from our industry leading operations team. We have developed a strong growth team with significant expertise in completing transactions in the beverage manufacturing space. Most importantly, while we have excellent external advisors, legal, financial and otherwise, we control our own destiny by completely controlling the process with our in-house team. As we continue to scale, we expect on-going acceleration in our ability to effectively assess, acquire and integrate new facilities in a number of jurisdictions."
Enhanced Management and Board of Director
From July to September, Wildpack continued to expand its leadership team with the appointment of Mrs. Sara Coyle, MBA, BSc. to the Board of Directors. Sara brings extensive transaction and finance experience specific to the packaging and industrial distribution space. Sara was made Committee Chair of the Merger & Acquisition/Finance Committee and will lend her experience to Wildpack's growth initiatives as the scope of upsizing continues to increase.
The Company added to its leadership team with the appointment of Dan Wales to VP, People and Culture, Elijah Clare to VP, Investor Relations, Sean Delaney as VP, Supply Chain, David Cassidy as VP, Operations, Jason Leszczynski as Director, Maintenance and Engineering and Michael Maddox as Director, Center of Excellence. Dan's experience building teams and leading people and culture with progressive public companies such as his experience at Lululemon was immediately impactful as Wildpack seeks to offer differentiated people centric employment opportunities and attract talent throughout the organization. Elijah brings a wealth of capital markets experience to the Investor Relations strategy. Wildpack's Operations team was fortified with the additions of Sean, Jason, David, and Michael who played key operational roles at industry leading companies such as Coca-Cola, Adirondack, Anheuser-Busch and Grant Thornton.
"Our ability to attract tier-one talent across all divisions of our business is a strong leading indicator that we are on to something exciting. Whenever you can convince someone to leave the comfort of their well-established and in most instances quite prestigious job to join an industry disrupter setting a course for uncharted territory, that is the best vote of confidence you can receive. Our existing team is ecstatic with the leadership these individuals provide and having them allows our growth team to be laser focused on growing the enterprise," said Mitch Barnard, Chief Growth Officer.
Facility Planned Utilization Step-up – Baltimore & Las Vegas
As part of Wildpack's step-up build strategy, the Baltimore facility added a second sleeving line and Las Vegas added both a sleeving and a printing line. The continued footprint optimization and expansion of Wildpack's offering continues to contribute to the overall build-and-buy growth strategy.
Decorating lines are currently the primary driver of revenue for Wildpack and have been the early focus of build-and-buys in accordance with our strategic business plan. Printing will provide Wildpack two key advantages being a decrease in cost of goods sold by removing the third-party markup we currently pay for sleeves and labels, as well as a decrease in lead-time due to internal logistical efficiencies.
The Operations team has been concurrently implementing business processes and innovative standard operating procedures aimed at improving quality assurance, predictability of the supply chain and yield. Improvements in operations have seen a transformative acceleration under the new leadership team in this division.
Chuck Zadlo, Chief Operating Officer said: "I have dipped into my electronic rolodex and hired a number of the key leaders that I had the pleasure of working with during my journey through beverage manufacturing leadership. Wildpack is the perfect opportunity for these talented and experienced professionals to take all that they have learned through their top-notch training at market leading businesses and build it here. This is not an opportunity that presents itself very often. Those we are recruiting quickly identify what the other side looks like after we succeed and are eager to join and roll up their sleeves to make their mark."
Per: "Mitch Barnard"
Mitch Barnard
Chief Executive Officer and Director
Advisors
Stifel GMP is acting as financial advisor to Wildpack Beverage, Inc., Fasken Martineau DuMoulin LLP is acting as its legal advisor.
Visit our investor website at:
www.investor.wildpackbev.com
About Wildpack
Wildpack is engaged in beverage manufacturing and packaging, operating in the middle market by providing sustainable aluminum 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, Atlanta, Georgia, Longmont, Colorado, Sacramento, California and Las Vegas, Nevada with a focus on digital innovation and green ready-to-drink packaging. 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, statements regarding future operational guidance, achievement of M&A targets, future definitive agreements, anticipated benefits resulting from addition of a printing line and achievement of further growth, including with respect to the increase of Wildpack's facility footprint. 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 related to Wildpack's business, including: that Wildpack's assumptions in making forward-looking statements may prove to be incorrect; the inability to achieve M&A targets as currently anticipated, if at all; the inability to enter into future definitive agreements as currently anticipated, if at all; the benefits resulting from addition of a printing line not being realized as currently anticipated, if at all; the inability to achieve further growth as currently anticipated, if at all; delays in filing of financial information; 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.
