WILDPACK BEVERAGE INC. VANCOUVER, BC, July 5, 2021 /PRNewswire/ - Wildpack Beverage Inc. (TSXV: CANS) ("Wildpack" or the "Company") is pleased to announce that, further to its news release dated June 17, 2021, it has closed the acquisition of all of the issued and outstanding securities of CraftPac, LLC (the "Georgia Facility") in exchange for cash consideration of US$2.15 million.
On the date of acquisition, the Georgia Facility was operating on a cashflow positive basis with one shift. Wildpack has developed an integration and utilization step-up plan that involves completing the following milestones by December, 2021: (i) adding a second shift, and subsequently a third shift, to the Georgia Facility; (ii) absorbing the Georgia Facility's pre-existing back office and supply chain into Wildpack's ecosystem; and (iii) leasing adjacent warehouse space.
The Georgia Facility's location fits into Wildpack's strategic business plan of developing a network of rightsized manufacturing locations across the US to better serve middle market beverage brands.
"This foothold in the South-East is anticipated to enable our salesforce to not only support existing customers with distribution in that region but also to go after a deep opportunity pool previously untouchable due to shipping distance and cost. The response from the market regarding our ability to service this new geography has exceeded internal expectations and our sales backlog behind the planned staged upgrades is already growing" said Luis Duma, Head of Sales.
Thomas Walker, Chief Growth Officer added "We have further calibrated our acquisition playbook with this purchase and gained valuable experience that we will carry through the continued execution of our strategic business plan. Our first acquisition in June of last year took nine months from start to finish, while this one took 60-days. We are progressing on additional acquisitions and have already begun turning a portion of our team's efforts to progressing opportunities for anticipated acquisitions in 2022 through our pipeline."
WILDPACK BEVERAGE INC.
Per: "Mitch Barnard"
Mitch Barnard
Chief Executive Officer and Director
About Wildpack
Wildpack is engaged in beverage manufacturing and packaging, operating in the middle market by providing can filling and decorating services to brands throughout the United States. Wildpack currently operates indirectly through its wholly owned subsidiaries and out of facilities in Baltimore, Maryland, Sacramento, California and Las Vegas, Nevada. Wildpack commenced trading on May 19, 2021 on the TSX Venture Exchange under the symbol "CANS.V".
Forward-Looking Statements
This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, without limitation: integration of the Georgia Facility, our statements related to the Company's growth plans, including building and acquiring more facilities, scaling overall throughput, the ability to identify and enhance the value of acquisitions and the resulting impact on revenue and margins. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Wildpack's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of Wildpack's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Transaction, including: that Wildpack's assumptions in making forward-looking statements may prove to be incorrect; the inability to integrate the Georgia Facility as currently anticipated; adverse market conditions; risks inherent in the beverage manufacturing and packaging sector in general; that future results may vary from historical results; and competition in the markets where Wildpack operates. Except as required by securities law, Wildpack does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
View original content to download multimedia:https://www.prnewswire.com/news-releases/wildpack-closes-georgia-acquisition-and-begins-planned-utilization-step-up-301325576.html
SOURCE Wildpack Beverage Inc.
