good natured Products Inc. to buy Illinois-based sheet extruder
good natured Products Inc. (the “Company” or “good natured®”) (TSX-V: GDNP), a North American leader in earth-friendly plant-based products, announced that, through wholly owned subsidiaries, it has entered into definitive agreements (the “Definitive Agreements”) to acquire all of the operating assets of Ex-Tech Plastics Inc. (“Ex-Tech”), a manufacturer of high quality, rigid plastic sheets, and real estate assets owned by a related company ETP Inc. for cash consideration of approximately $14.1 million USD (the “Acquisition”).
Founded in 1982, Ex-Tech is located 90 minutes from Chicago in Richmond, Illinois and produces a variety of plastic sheet and film products, including extruded roll stock sheet for thermoformed packaging. Ex-Tech operates seven different extrusion lines in a dedicated 75,000 square foot facility on 9.5 acres of land. Ex-Tech’s 105 customers serve a diverse set of end markets, including retail, food, and medical packaging. Customers are primarily located in the midwestern and southwestern United States.
“We are extremely pleased to build on our long-standing partnership with Ex-Tech that dates back well before March 2016 when we acquired Ex-Tech’s bioplastic division,” said Paul Antoniadis, CEO of good natured®. “The combined entity positions us as one of North America’s leading commercial sheet extruders, serving over 200 thermoforming packaging companies across North America. This acquisition firmly secures the Company’s market positioning within our industrial roll stock market segment, while setting the stage for future expansion in production and manufacturing capabilities.”
Paul Antoniadis, CEO of good natured® continued, “This acquisition will significantly add scale to our operations and follows the acquisition of IPF in December 2020. Ex-Tech’s FY2020 revenues were $25.8 million USD or approximately $33 million CAD, and when added with IPF’s trailing twelve month revenue of $17.1 million CAD and with our fiscal 2020 revenue of $16.7 million CAD, the Ex-Tech acquisition will nearly again double the revenue of good natured®. We expect to access cost synergies in terms of eliminating our existing outsourcing agreement and from our additional scale of operations. The Ex-Tech Acquisition represents good natured® third acquisition in the last 12-months and demonstrates our team’s capability in executing on our acquisition growth strategy.”
“We have witnessed firsthand, over the past several years, the tremendous growth we’ve achieved with good natured® and also benefited as material owners of good natured®,” said Emily Pichon, Chair and majority owner of Ex-Tech. “We believe now is the perfect time for the two companies to fully integrate. Given the significant growing demand for environmentally responsible materials and the greater scale and influence we can achieve together, combining forces creates tremendous value in our industry, as well as for all of us as owners. Our family believes in the strategy and business model of good natured® and intends to hold our approximately 5 million shares in good natured®.”
