North American plant-based product provider good natured Products has completed its acquisition of FormTex Plastics through a wholly owned subsidiary.
The deal was announced on 4 May and has involved good natured acquiring all of FormTex’s business and operating assets for a $4.8m cash consideration.
Based in Houston, Texas, FormTex manufactures custom plastic packaging for the medical, food, electronic, industrial and retail end markets.
The company operates a leased 51,000ft² facility with seven thermoforming machines in Houston.
The deal has added 30 business-to-business (B2B) accounts to good natured’s active B2B customer base.
It also includes at least $650,000 of net working capital as part of the purchase price.
good natured CEO Paul Antoniadis said: “We are very pleased to complete this acquisition and welcome everyone at FormTex to the good natured family.
“The addition of FormTex expands the scope and reach of our packaging business, in line with the strategic direction we’ve communicated, and we believe there is material upside potential for revenue and profitability through capacity expansion, supply chain improvements and cost synergies previously disclosed.”
Following the acquisition, good natured will aim to meet FormTex’s extruded rollstock sheet requirements by supplying from its Ex-Tech facility.
In addition, FormTex’s proximity to a major outbound shipping endpoint in North America is expected to reduce shipping costs for good natured’s customers in southern US states.
The company’s existing management team will join good natured after the deal.
FormTex co-owner Mark Anselmo said: “It is a very strong strategic fit, and we see the same path to much larger and more profitable operations leveraging greater access to capital and good natured’s internally produced extruded rollstock capacity.
“This in turn will enable us to have a more significant positive environmental impact by producing more sustainable packaging solutions that the market is demanding.”