Published in Food/Agribusiness
Kentwood-based Land and Sea Packaging to sell to Canadian firm in $37.3M cash and stock deal COURTESY PHOTO

Kentwood-based Land and Sea Packaging to sell to Canadian firm in $37.3M cash and stock deal

BY Tuesday, November 02, 2021 11:11am

KENTWOOD — A Vancouver-based beverage packaging manufacturer that has expanded its presence in the United States plans to purchase a Grand Rapids area company.

Wildpack Beverage Inc., which specializes in beverage can labeling, co-packing and packaging and supplies, signed a binding agreement on Monday to acquire KT Murray Corp., which does business as Land and Sea Packaging, in a nearly $37.3 million cash and stock deal. 

In the transaction, the Canadian firm’s wholly owned Wildpack Holdings US Inc. subsidiary agreed to pay $26.1 million in cash and about 12.6 million common shares of Wildpack beverage stock valued at $1.10 Canadian dollars per share. Wildpack in May began trading on the TSX Venture Exchange under the symbol CANS.V.

Land and Sea owner Kim Murray and COO Tim Murray will remain with the company as employees and will get a voting seat and an observer seat on the Wildpack board of directors. 

“We are extremely excited to join the Wildpack team,” Land and Sea Packaging owner Kim Murray said in a statement. “We have very similar customer-centric cultures that will result in a seamless transition.”

“The added capabilities in the areas of can decorating and contract filling will allow us to better serve our existing customers as a full-service supply chain, packaging and manufacturing provider,” Murray added. “We are eager to gain the resources that Wildpack has access to so that we can replicate our forecasting and procurement business across their platform of customers."

Land and Sea Packaging is a family-owned business founded in 1986 and purchased by Murray in 2000. When first established, the company focused on packaging solutions for the cleaning and chemical industries, but later expanded to food and beverage. The company offers glass, metal and plastic packaging options and brokers approximately 90 million cans annually, according to a statement. 

Land and Sea serves a client base spanning 15 states. It offers a range of services, including custom bottles and cans, labels and silkscreening, carriers, and case packaging. 

Financially, Land and Sea has been the stronger performer over the last 12 months of operations, when it generated $21.8 million in revenue, had $6.7 million in gross profit, and earnings before interest, depreciation and amortization (EBITDA) of $4.7 million as of Sept. 30.
By comparison, in the last 12 months that ended June 30, Wildpack generated slightly higher revenues of $22.7 million, but had $3 million in gross profit and $700,000 in EBITDA.

The purchase fits with Wildpack’s goal for 2021 of either acquiring or building six new facilities. The company also operates facilities in Maryland, Georgia, Colorado, California and Nevada, with a focus on ready-to-drink packaging.

“What Land and Sea has been able to build is nothing short of incredible,” Wildpack CEO Mitch Barnard said in a statement. “Their ability to build customer relationships and trust through meticulous forecasting and procurement services has transformed their business from just a broker to a meaningful partner.  

“This creates significant stickiness in their existing business and provides Wildpack the internal expertise to scale a forecasting and procurement division providing value-add incremental services to our more than 400 customers.”

Stifel GMP acted as the financial adviser to Wildpack.

The transaction is subject to TSX Venture Exchange and other regulatory approvals. 

Concurrently, Wildpack is issuing a unit offering valued at $22 million Canadian and has a deal for a $20 million private placement involving three underwriters. Wildpack intends to use the net proceeds from the offering and private placement to fund a portion of the acquisition purchase price and for general corporate purposes.

The company expects the acquisition, offering and private placement deals to close on or around Nov. 23.

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