- Wildpack Beverage (CANS) has closed its acquisition of KT Murray Corporation
- The total purchase price payable by Wildpack is $37,260,000, consisting of 12,596,081 common shares and US$26.1 million in cash
- KT Murray Corporation, dba Land and Sea Packaging is an established high-volume aluminum can brokering business based in Grand Rapids, Michigan
- Land and Sea complements Wildpack’s existing operations in the areas of brokerage of aluminum cans, supply chain forecasting and procurement
- Wildpack has agreed to sell 22,680,412 units to a syndicate of underwriters for aggregate gross proceeds of $22 million
- Concurrent to this bought-deal offering, Wildpack has agreed to sell 20,000 convertible debenture units for gross proceeds of $20,000,000
- Wildpack Beverage Inc. is down 11.45 per cent on the day, trading at C$0.735 per share at 2:30 pm EST
Wildpack Beverage (CANS) has completed the acquisition of KT Murray Corporation for US$26.1 million and US$11.2M in shares.
KT Murray Corporation, dba Land and Sea Packaging is an established high-volume aluminum can brokering business based in Grand Rapids, Michigan.
A leader in the rigid packaging business, Land and Sea complements Wildpack’s existing operations in the areas of brokerage of aluminum cans, supply chain forecasting and procurement.
Thomas Walker, Chief Growth Officer of Wildpack remarked on the acquisition.
“Bringing Land and Sea onto the Wildpack team creates great immediate synergies while setting the stage for a new long-term growth avenue. Land and Sea is best-in-class at packaging sales, brokering, and supply chain optimization. We have a thorough integration strategy in place to ensure that Wildpack absorbs the impressive learnings of Land and Sea while offering them the support of our nationwide filling and decorating services. Their company culture is a perfect fit for Wildpack and we expect to see some exciting progress from their team. Adding another successful, much larger acquisition under our belt have shown our deal team and process is continuing to prove itself capable of executing and constantly improving. We are confident future acquisitions will continue to be smooth.”
Tim Murray, Land and Sea Packaging Chief Operating Officer said,
“Kim and I are extremely excited to join the Wildpack team. Our long-term plan was to expand our business to a second location. This transaction allows us to be part of a larger organization with 6 locations and a broader offering that includes can decorating and filling with plans to expand to 12 locations in 2022. The two businesses are complementary with our focus on the container and cartons and Wildpack’s expertise in decorating, packaging, and operations. The most important part of the transaction for us was the cultural fit. Wildpack’s people-first culture is what convinced us that this was the right move for us and our dedicated team.”
The total purchase price payable by Wildpack US is $37,260,000, consisting of 12,596,081 common shares at a price of C$1.10 per share and US$26.1 million in cash.
On closing, the common shares will be deposited to be held and released to the vendor over a period of 24 months from the closing date, with the final 10 per cent being released on the 24 month anniversary of the closing date.
The transaction is subject to TSX Venture Exchange and other necessary regulatory approvals.
Wildpack has closed the sale of 22,680,412 units at a price of C$0.97 per unit to a syndicate of underwriters including Roth Capital Partners LLC, PI Financial Corp., and Leede Jones Gable Inc. for aggregate gross proceeds of $22 million.
Wildpack paid the underwriters a cash commission equal to C$1,320,000 of the gross proceeds of the unit offering and issued 1,320,000 non-transferable compensation warrants.
Concurrent to this bought-deal offering, Wildpack has also closed its bought deal private placement for 20,000 debenture units at a price of $1,000 per debenture unit, for gross proceeds of $20,000,000.
The underwriters received a cash commission equal to 6 per cent of the gross proceeds of the debenture offering and compensation warrants equal to 6 per cent of the gross proceeds of the offering divided by the conversion price.
Wildpack Beverage offers co-packing, sleeving, warehousing, and third-party logistics services to the beverage brands industry.
Wildpack Beverage Inc. is down 11.45 per cent on the day, trading at C$0.735 per share at 2:30 pm EST.