Canadian company Good Natured Products has acquired family-owned-and-operated business Shepherd Thermoforming & Packaging.
The strategic acquisition was initially announced on 3 March, with additional details on the transaction on 29 April 2020.
The C$9.5m ($6m) deal also includes all of Shepherd’s real estate.
Shepherd assets include machinery, moulds and a 42,000ft² manufacturing facility. All of these are situated on 2.31 acres of land in the Greater Toronto Area of Brampton, Ontario.
Good Natured CEO Paul Antoniadis said: “We’re very pleased to announce the completion of this acquisition, and welcome everyone at Shepherd to the Good Natured family.
“Shepherd grows our customer base with an addition of over 75 customers, our capabilities, and our market reach into Eastern Canada and the Northeast United States.”
The transaction was funded with a mix of $6m BDC mortgage loan and $1.35m in a vendor-take back promissory note. The remaining was financed by a drawdown of the company’s previously announced June 2019 BDC credit facility.
BDC Cleantech practice director Jahangir Bhatti said: “We are delighted to support an acquisition that marks a key milestone in Good Natured’s history, as well as its contribution to the adoption of plant-based plastics.
“With its wide assortment of products and strategic Eastern Canada location, Shepherd is in good stance to fuel good natured’s already robust growth.”
Last month, Good Natured added biodegradable cups, bowls, takeaway containers, plates and cutlery to its foodservice collection.