Successful Acquisition Results in Exit for all Stakeholders
Industry: Manufacturer and Distributor—Packaging
Company Profile: Richard’s Packaging is the largest rigid packaging distributor in Canada and the third largest in
North America. The company serves the pharmaceutical, food, wine, spirits, cosmetic and specialty chemical industries and has
17 locations throughout North America, including three manufacturing plants.
NewPoint’s Role: NewPoint was retained as an exclusive financial advisor by a team of executives who had
worked previously with NewPoint’s partners on an MBO (Management Buy-out). NewPoint conducted an acquisition search, led our
client team through multiple rounds of bidding, negotiated a favourable purchase price, raised the capital (senior debt, mezzanine
debt and equity) and played a key role in negotiating various agreements, including the purchase, shareholder, loan and inter-lender agreements.
Transaction Snapshot: Richard’s was purchased from five owner-managers, who had successfully grown the business,
but the company required a professional and well capitalized shareholder group to take advantage of opportunities in its industry.
NewPoint partnered our client with EdgeStone Capital, Crown Capital and LaSalle Business Credit to complete the transaction. Richards went
public on the TSX within 15 months following the acquisition at a value of more than twice what was paid in the original acquisition.
