{"id":72655,"date":"2020-03-12T07:39:06","date_gmt":"2020-03-12T06:39:06","guid":{"rendered":"https:\/\/renewable-carbon.eu\/news\/?p=72655"},"modified":"2020-03-09T15:58:57","modified_gmt":"2020-03-09T14:58:57","slug":"good-natured-products-inc-announces-acquisition-of-shepherd-thermoforming-packaging-inc","status":"publish","type":"post","link":"https:\/\/renewable-carbon.eu\/news\/good-natured-products-inc-announces-acquisition-of-shepherd-thermoforming-packaging-inc\/","title":{"rendered":"good natured Products Inc. Announces Acquisition of Shepherd Thermoforming & Packaging Inc."},"content":{"rendered":"

good natured Products Inc. (the \u201cCompany\u201d or \u201cgood natured\u00ae<\/sup>\u201d) (TSX-V: GDNP) today announced that it has entered into a definitive agreement with the shareholders of Shepherd Thermoforming & Packaging Inc., (\u201cShepherd\u201d) a leading thermoformer with over 35 years\u2019 experience, to acquire 100% of Shepherd and all its real estate assets for CAD$9.5 million in cash (the \u201cShare Purchase\u201d). The assets include machinery, molds and a 42,000 square foot manufacturing facility, all located on 2.31 acres of land in the Greater Toronto Area of Brampton, Ontario.\u00a0<\/strong><\/p>\n

Shepherd designs custom packaging including engineering, mold production and final product manufacturing for both thin gauge and heavy gauge applications. Their customers include several Fortune 500 companies located throughout eastern Canada and the northeast United States. Shepherd operates six different thermoforming lines as well as two CNC machines at its fully integrated design, mold manufacturing, testing and manufacturing facility.<\/p>\n

\u201cAfter nearly doubling our revenues in 2019, this transaction marks another significant milestone in the company\u2019s growth trajectory. The acquisition enables us to increase our production capacity and expand our plant-based packaging assortment to meet the needs of more customers,\u201d said Paul Antoniadis, CEO of good natured\u00ae<\/sup>. \u201cWhether it be through existing molds available at the Shepherd facility, or the ability for us to expand on the development of custom packaging solutions, one of our largest growth sectors, our production capacity and assortment has now increased significantly.\u201d Paul went on to add \u201cthe strategic location of Shepherd\u2019s facility also provides good natured\u00ae<\/sup> with a strong and easily accessible entry point into Ontario and eastern Canada, as well as the northeastern United States.\u201d<\/p>\n

Paul concluded by saying, \u201cWe\u2019re delighted to welcome Mark and Todd Shepherd and the entire Shepherd team to the good natured\u00ae<\/sup> family. We share a common vision to be leaders in the development and adoption of sustainable, planet-friendly packaging solutions in North America, so the combination of our collective expertise, people and manufacturing capability further positions the Company to execute against this ambition.<\/p>\n

Shepherd generated average annual revenue of over CAD$5.5 million and average annual adjusted EBITDA of CAD$420,000 in the prior three fiscal years. Completion of the Share Purchase remains subject to financing and a number of customary closing conditions in favor of good natured\u00ae<\/sup> and TSX Venture Exchange approval. The acquisition is expected to be accretive during the current fiscal year.<\/p>\n

The Company is completing the final stages of financing required to close the Share Purchase with its financial partners, including Business Development Bank of Canada (\u201cBDC\u201d), under the terms and conditions of its previously announced BDC financing from June 2019.<\/p>\n

\u201cWe are very excited to partner with good natured\u00ae<\/sup> and continue the legacy of our business that was started in 1984 by our father Barry Shepherd,\u201d said Todd Shepherd, President of Shepherd Thermoforming & Packaging Inc. \u201cOur customers are increasingly requesting plant-based alternatives, so joining together with good natured\u00ae<\/sup>, as we have on several projects over the past four to five years, will accelerate our ability to meet this growing demand.\u201d<\/p>\n

The closing of the transaction is expected to be not later than April 30, 2020.<\/p>\n

In addition to the $9.5 million payable in cash at closing, the Share Purchase contemplates an earnout payment of $2.25 million may be payable at some point between 42 and 60 months post-closing, upon satisfaction of a condition relating to increase in the value of the real estate purchased as part of the transaction. The Company also intends to redeem the remaining $1.18 million in principal amount of its convertible debentures issued February 2018 at the closing of the transaction.<\/p>\n

The definitive agreement governing the Share Purchase will be available on the Company\u2019s SEDAR profile at www.sedar.com subsequent to closing the transaction in accordance with TSX filing regulations.<\/p>\n

Acquisition Conference Call<\/h3>\n

To provide more details on the Company\u2019s acquisition of Shepherd Thermoforming & Packaging Inc., the Company is pleased to host a live conference call with Paul Antoniadis,\u00a0Executive Chair & CEO, and Don Holmstrom, Executive Vice President & CFO, on\u00a0Wednesday, March 4\u00a0at 11:30am EST.<\/p>\n

In addition to discussing the Acquisition, Paul will provide an overview of the Company\u2019s acquisition strategy, while Don will talk to the financial aspects of the acquisition and what this means for the Company moving forward.<\/p>\n

Paul and Don will both be available to answer questions at the end of the call. To ask a question, use the question form on the webcast web page or email invest@goodnatured.ca<\/a><\/p>\n

 <\/p>\n

Conference call details<\/h3>\n

Date:\u00a0Wednesday, March 4
\nTime: 11:30am EST
\nLink:\u00a0http:\/\/www.gowebcasting.com\/10526\u00a0<\/a><\/p>\n

 <\/p>\n

About good natured Products Inc.<\/h3>\n

good natured\u00ae<\/sup> is producing and distributing one of North America\u2019s widest assortments of better everyday products\u00ae<\/sup> made from the highest possible percentage of renewable, plant-based materials and no BPAs, phthalates or other chemicals of concern potentially harmful to human health and the environment.<\/p>\n

By combining cutting-edge renewable material technology and the latest sustainable design features,\u00a0good natured\u00ae<\/sup> creates planet-friendly products and packaging that do good for the planet, good for human health and good for business by driving incremental sales, minimizing waste and improving logistics, all bundled up in a fresh and friendly brand.<\/p>\n

About Shepherd Thermoforming and Packaging Inc.<\/h3>\n

Shepherd Thermoforming is a family owned-and-operated business that has become a placeholder in the North American plastics industry since its inception in 1984. With a commitment to customer satisfaction, Shepherd has grown to become an all-in-one solution for custom thermoforming and vacuum forming needs.<\/p>\n

Shepherd\u2019s 42,000 square foot facility is home to industry leading sales, engineering and production teams. With a commitment to offer complete solutions for all clients, Shepherd applied for and attained SQF (Safe Quality Food) certification to go along with its fully integrated ISO 9001:2015 certificate. This means that Shepherd has the ability to produce custom, food safe clamshells, blister packs and other forms of thermoformed and vacuum formed packages to suit each customer\u2019s specific needs.<\/p>\n","protected":false},"excerpt":{"rendered":"

good natured Products Inc. (the \u201cCompany\u201d or \u201cgood natured\u00ae\u201d) (TSX-V: GDNP) today announced that it has entered into a definitive agreement with the shareholders of Shepherd Thermoforming & Packaging Inc., (\u201cShepherd\u201d) a leading thermoformer with over 35 years\u2019 experience, to acquire 100% of Shepherd and all its real estate assets for CAD$9.5 million in cash […]<\/p>\n","protected":false},"author":59,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","nova_meta_subtitle":"","footnotes":""},"categories":[5572],"tags":[5847,7105],"supplier":[14494,16802],"class_list":["post-72655","post","type-post","status-publish","format-standard","hentry","category-bio-based","tag-bioplastics","tag-packaging","supplier-good-natured","supplier-shepherd-thermoforming-and-packaging-inc"],"_links":{"self":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/72655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/comments?post=72655"}],"version-history":[{"count":0,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/72655\/revisions"}],"wp:attachment":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/media?parent=72655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/categories?post=72655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/tags?post=72655"},{"taxonomy":"supplier","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/supplier?post=72655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}