Canadian beverage manufacturing and packaging company Wildpack has agreed to acquire US-based aluminium can filler Vertical Distilling for $4.5m.
As part of the deal, Wildpack will take over all of the entire issued and outstanding securities of Vertical Distilling’s capital.
The binding agreement is subject to certain holdbacks and was entered via a wholly owned subsidiary of Wildpack.
Vertical Distilling serves the middle-market beverage industry in Colorado and its surrounding US states, a region crucial to Wildpack’s growth strategy.
After the acquisition, Wildpack aims to leverage Vertical’s strong sales force, operational expertise and customers, as well as the opportunities to add further shifts and install new capabilities.
Wildpack chief growth officer Thomas Walker said: “We have successfully completed two acquisitions pursuant to our previously announced letters of intent and are excited to see the third deal move to the definitive agreement stage.
“The completion of consecutive acquisitions and the signing of this definitive agreement demonstrates our ability to efficiently discover, assess and close on targets that fit our strategic business plan.
“We are continuing to build our mergers and acquisitions (M&A) team and believe the success of our acquisition strategy will be a critical aspect of our overall business strategy.”
Wildpack expects the acquisition to generate several synergistic opportunities, which will depend on its standard ramp-up strategy after closure.
The deal is expected to close before the end of this month subject to certain conditions.
Wildpack has facilities in Maryland, California and Nevada. The company started trading in May on the TSX Venture Exchange.
Last month, Wildpack completed its previously announced acquisition of CraftPac’s Georgia facility for $2.15m.
The company aims to achieve certain milestones related to the acquisition by December as part of its integration and utilisation step-up plan.