MONTREAL—Montreal-based envelope and packaging products manufacturer Supremex Inc. announced July 20 that it has acquired Stuart Packaging Inc., another Montreal firm which manufactures folding carton packaging.
The transaction was concluded for total cash consideration of $17.5 million on a cash-free and debt-free basis.
“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.
Emerson continued, “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.”
“We are delighted to be part of the Supremex family. With their domestic and U.S. footprint and complementary manufacturing processes, we are now in a position to grow our customer’s share of wallet and accelerate our growth in new regional markets,” said Stuart Goldman, president of Stuart Packaging.