CANADA – North American leading manufacturer and provider of paper-based packaging solutions, Supremex has announced the acquisition of shares of Impression Paragraph Inc., establishing its presence in North America.
Impression Paragraph is an integrated provider of paper-based packaging, print and point-of-sale products for a broad range of commercial markets.
The transaction was concluded for a total consideration of approximately US$26.6 million, on a cash-free and debt-free basis, subject to customary adjustments, financed through the Company’s existing credit facility.
Founded more than 35 years ago, Paragraph operates two facilities located in Ville-Saint-Laurent and Saint-Hyacinthe, Québec.
Its offering consists primarily of folding carton packaging and point-of-sale displays for the cosmetic, pharmaceutical, food, confectionary and retail sectors.
It also provides an array of commercial, digital and wide-format printing. For the 12-month period ended October 31, 2022, the company generated sales of approximately US$38.6 million.
Commenting on the deal, Stewart Emerson, President and CEO of Supremex noted: “We are excited with this acquisition and the critical mass it brings to our folding carton operations.
“Paragraph is a well-managed company with sound assets, available capacity, a solid reputation and excellent brand awareness in the Quebec marketplace.”
Mr. Emerson added: “Its proven know-how, unique capabilities and strong customer relationships can be leveraged to further expand our reach in the value-added packaging space and will yield important synergies.
“We are thrilled to welcome Paragraph’s management and 175 employees to the Supremex team.”
This acquisition comes two months after Supremex acquired all assets of Royal Envelope Corporation (“Royal Envelope”), an envelope manufacturer and lithography company located in Chicago for US$18.7 million.
Royal Envelope operates two facilities in the greater Chicago area, focusing primarily on higher-end, specialized, highly decorated envelopes for the direct mail market.
Its highly skilled workforce of 78 employees has developed expertise in special format, colored envelopes for direct mail applications.
“We are very excited with this acquisition that expands our reach in the fragmented U.S. envelope market and gives us a significant manufacturing presence in the U.S. Midwest,” said Stewart Emerson, President and CEO of Supremex at the time.
“Royal Envelope has established itself as one of the preeminent direct mail envelope manufacturers in North America, utilizing a modern fleet of envelope converting equipment, in-house lithographic printing and embellishing, targeting the financial services sector.
“We expect this acquisition will generate significant synergies and additional operating efficiencies throughout our network. We are pleased that John, Matt and Mike Pusatera will remain with the Supremex team.”
For the 12‑month period ended June 30, 2022, Royal Envelope generated sales of approximately US$38.8 million.
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