Wildpack Closes Colorado Acquisition and Completes Baltimore Decorating Line Installation
24 August 2021
Wildpack Beverage Inc. is pleased to announce that, further to its news release dated August 9, 2021, it has closed the acquisition of all of the issued and outstanding securities of Vertical Distilling, LLC (the "Colorado Facility") in exchange for cash consideration of US$4.5 million.
On the date of acquisition, the Colorado Facility was operating on a cashflow positive basis with only one shift. Wildpack has developed an integration and utilization step-up plan that involves completing the following milestones in stages by March, 2022: (i) shift optimization to achieve more profitable gallons at the Colorado Facility; (ii) absorbing the Colorado Facility's pre-existing back office and supply chain into Wildpack's ecosystem; and (iii) broadening the Colorado Facility's service offering.
The Colorado Facility is expected to become a central hub for Wildpack and its customers as it Wildpack continues to execute on the strategic business plan of building a network of facilities within one-day shipping range of all major distribution centers in the middle market beverage industry.
"Colorado is a key geography in the middle market beverage industry for both customers and vendors. Establishing a presence there not only furthers our strategic business objectives as it relates to decreasing shipping cost and complexity for customers, but it also places us as neighbors to several of our key vendors. Strengthening these relationships is expected to have a positive impact on our business as we continue to accumulate market share in spaces that we operate." said Thomas Walker, Chief Growth Officer.
Also, Wildpack has completed the installation of an additional brand-new decorating line housed within its pre-existing facility in Baltimore, Maryland to meet previously unmet demand. Once fully ramped in accordance with Wildpack's standard step-up plan, the Baltimore facility is anticipated to achieve throughput in excess of 2 million cans per month.
"We have developed a strong team dedicated to internal upgrades of existing lines and the installation of new ones within our operation. The efficiency with which this line was built and the lack of disruption to existing ongoing operations during its construction validates our ability to make strategic additions to our facilities beyond upgrading existing assets." said Chuck Zadlo, Chief Operating Officer.
WILDPACK BEVERAGE INC.
Per: "Mitch Barnard"
Chief Executive Officer and Director
Wildpack is engaged in beverage manufacturing and packaging, operating in the middle market by providing can filling and decorating services to brands throughout the United States. Wildpack currently operates indirectly through its wholly owned subsidiaries and out of facilities in Baltimore, Maryland, Atlanta, Georgia, Longmont, Colorado, Sacramento, California and Las Vegas, Nevada. Wildpack commenced trading on May 19, 2021 on the TSX Venture Exchange under the symbol "CANS.V".
This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws, including, without limitation: integration of the Colorado Facility as described herein, the anticipated impact of the Colorado Facility on Wildpack's business, the anticipated production output resulting from the installations at the Baltimore facility, and our statements related to the Company's growth plans generally. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Wildpack's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of Wildpack's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding the Transaction, including: that Wildpack's assumptions in making forward-looking statements may prove to be incorrect; the inability to integrate the Colorado Facility as currently anticipated; adverse market conditions; risks inherent in the beverage manufacturing and packaging sector in general; that future results may vary from historical results; and competition in the markets where Wildpack operates. Except as required by securities law, Wildpack does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.