- SupremeX (SXP) has acquired Graf-Pak, a provider of folding carton packaging solutions to numerous commercial markets
- Consideration was approximately C$6 million, or less than 1x revenue
- The acquisition expands SupremeX’s folding carton presence amid growing demand from e-commerce
- SupremeX is Canada’s only national packaging and envelope manufacturer
- SupremeX (SXP) stock last traded at $5.66 per share
SupremeX (SXP) has acquired Graf-Pak, a provider of folding carton packaging solutions to numerous commercial markets.
Consideration was approximately C$6 million, on a cash-free and debt-free basis, financed through an existing credit facility.
Founded in 1995 and employing close to 25 people, Graf-Pak operates a facility in Pointe-Claire, Québec, near its primary folding carton plant in Lachine. It focuses on printing and manufacturing folding carton packaging products, primarily for the food and cosmetics markets. The company generated sales of approximately $6.7 million during its last fiscal year.
SupremeX will integrate Graf-Pak into its Lachine hub over the next 90 days. It expects the tuck-in acquisition to yield synergies within its existing folding cart operations, which are experiencing increasing demand from growth in e-commerce.
“The acquisition of Graf-Pak is a perfect fit with our existing folding carton operations in Quebec,” said Stewart Emerson, President and CEO of SupremeX. “Graf-Pak’s well-established business in the food and cosmetics sectors will provide further critical mass in these two important growth vectors for SupremeX.”
SupremeX is a leading North American provider of envelopes and paper-based packaging solutions. The company is Canada’s only national packaging and envelope manufacturer.
SupremeX (SXP) last traded at $5.66 per share.
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