Richards 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 was retained as an exclusive financial advisor by an executive 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.
Richards 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.