Supremex (LaSalle, Quebec), a leading North American manufacturer and marketer of stock and custom envelopes, and growing provider of packaging and specialty products, has acquired Stuart Packaging (Montreal), a leading eco-friendly provider of premium quality folding carton packaging for the consumer market. This acquisition brings the Supremex share of total revenues from packaging and specialty products to more than 22% on an annual pro-forma basis – “and represents a key building block of the company’s diversification and growth strategy.” The transaction was concluded for total cash consideration of $17.5 million on a cash-free and debt-free basis. In addition, an amount of up to $2.1 million will be payable in 24 months subject to the realization of certain pre-established financial targets over that period. “This acquisition significantly strengthens our position in the folding carton packaging market and further diversifies our revenue stream into a growing value-added market segment,” said Stewart Emerson, President and CEO of Supremex. “We look forward to working with Stuart Packaging’s exceptional group of employees and management team who will help us further grow our packaging platform in new and exciting growth markets. This is critical to our long-term success, as secular decline and margin pressure in the Canadian envelope market appear to be accelerating since the threat of a work stoppage at Canada Post in the summer of 2016. Our diversification strategy is on track and this current revenue split is in line with our diversification targets.” Supremex operates facilities across 7 provinces and 3 facilities in the U.S. and employs about 845 people.
“We’re delighted to be part of the Supremex family. With their domestic and U.S. footprint and complementary manufacturing processes, we’re now in a position to grow in new regional markets,” said Stuart Goldman, President of Stuart Packaging. Founded in 1983, the company is a fully-integrated folding carton manufacturer with annual revenues of about $18 million on a last-twelve-month basis. It employs about 65 people at its 68,000 sq.-ft. state-of-the-art facility located in Montreal. It offers packaging and finishing solutions for some of the largest multinational companies operating in the cosmetics, nutraceutical, fragrance and pharmaceutical industries – and its products have won both Packaging Association of Canada and Gutenberg awards of excellence for print and design. Goldman, its President and Founder, will assume a prominent role as President of Stuart Packaging Inc. – Folding Carton Division of Supremex and help the company expand its packaging product portfolio, while further leveraging its existing manufacturing and distribution platforms in Canada and the U.S.