DATA Communications Management entered into an agreement to acquire privately held BOLDER Graphics of Calgary, Alberta. DATA has arranged a new $5 million senior credit facility to help fund the acquisition, which will be for a total purchase price of approximately $4.9 million. Closing is expected to occur on or about November 10, 2017, subject to customary conditions.
Kevin McCoy, President, CEO and founder of BOLDER, is expected to remain with the company for approximately six months to assist in the transition. Dave Watt, VP, Sales and Marketing, will remain with the company and continue to serve BOLDER’s clients.
This $4.9 million purchase price is comprised of $2.0 million payable in cash on closing (net of shareholder loan repayments and transaction expenses), $1.0 million through the issuance of common shares of DATA, $0.9 million in the form of a subordinated, unsecured 6.0% interest-bearing vendor take back note to be payable over a 24 month period, and the assumption of approximately $1.0 million in outstanding long term indebtedness.
BOLDER is a western Canadian marketing communications business, tracing its roots back more than 40 years. Its core capabilities are in large-format digital printing, point of sale signage, corporate packaging, outdoor signage and vehicle graphics. BOLDER also specializes in loose-leaf bindery and stationery and other commercial print capabilities. The company has approximately 40 employees operating in a 59,000-square-foot facility.
“BOLDER’s customer base of leading western Canadian retailers and other brands will benefit from our own capabilities in Calgary, as well as our national footprint and technology solutions,” said Michael Sifton, CEO of DATA. “This acquisition further strengthens our large-format presence in the market and is expected to provide immediate synergies when combined with our state-of-the-art Calgary centre of excellence.”
BOLDER generated approximately $7 million in revenues (unaudited) for the fiscal year ended January 1, 2017. DATA intends to relocate BOLDER’s staff and operations into DATA’s 165,000-square-foot facility in Calgary. This DATA facility produces a range of sheetfed lithography, digital and wide-format print services, variable print-on-demand solutions and provides warehousing, fulfillment and distribution services.
DATA Moves to Acquire BOLDER Graphics
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