Supremex, a North American manufacturer and marketer of envelopes and a growing provider of packaging and specialty products, has concluded the acquisition of Groupe Deux Printing (G2) and its related company Pharmaflex Labels Inc. of Laval, Que.
The parties say the transaction was concluded for total cash consideration of $11.25 million on a cash-free and debt-free basis subject to customary adjustments for working capital and other items.
“With packaging representing close to 30 percent of our revenues on a pro-forma basis, we are now one step closer to reach our 50/50 diversification objectives, which is critical to our long-term success as the secular decline in the Canadian envelope market continues,” said Stewart Emerson, Supremex President and CEO.
Emerson says the acquisition “perfectly complements” its previous packaging acquisitions and growing labels business.
“We can now provide a complete range of packaging solutions to the pharmaceutical industry including related inserts, leaflets and labels, essentially becoming a one-stop-shop for our growing multinational customer base in the pharmaceutical, cosmetics and food industries,” he added.
G2 is a family-owned fully integrated manufacturer of folding cartons with annual revenues of approximately $12 million over its most recent 12-month period, including its related labels business, Pharmaflex. Employing 60 people across its two facilities, G2 offers in-house prepress operations and printing.
“[G2 is] delighted to be part of the growing Supremex family. With access to their manufacturing and distribution platform in Canada and the U.S., we expect to expand our reach and continue to grow,” said Giancarlo Mirabelli, who assumes the role of Director, Business Development, Folding Carton, at Supremex.
Supremex operates facilities across seven provinces in Canada and three facilities in the United States, and employs approximately 865 people.