Canada-based drinks manufacturing and packaging company Wildpack Beverage has agreed to purchase aluminium can filler Vertical Distilling for $4.5m in cash.
Based in Colorado, Vertical Distilling is the “leading filler” in its home and surrounding states, making it a key region in the middle market beverage industry and essential to Wildpack’s growth strategy, said the company’s statement.
Through the agreement, Wildpack expects to see a number synergistic opportunies, which includes adding more shifts, the withdrawl of “throughput pinch points with light capital upgrades and the installation of new capabilities.”
Wildpack’s chief growth officer, Thomas Walker, said: “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.”
Wildpack’s CEO, Mitch Barnard, added: “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 aluminium 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.”
The deal, which is subject to certain conditions, is expected to be completed by the end of this month, at which time Wildpack anticipates to commence its ramp-up strategy.
© FoodBev Media Ltd 2021
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