9/16/99 - Purchases Northland Ice Gel and Northland Custom Packaging
CRYOPAK INDUSTRIES INC. ("CII-V;CYPKF-L") - Purchases Northland Ice-Gel and Northland Custom Packaging
Cryopak Industries Inc. signed an agreement in principle to purchase Northland Ice-Gel Inc. and Northland Custom Packaging Inc.
Cryopak will pay a purchase price, primarily in cash, but facilitated by the issuance of common stock and "earn-out provisions" that call for continued growth in sales and EBITDA. (At this time, details of the purchase price are not being revealed for competitive reasons). The purchase is subject to the completion of due diligence, signing a formal purchase agreement and approval of the Vancouver Stock Exchange.
The Northland companies have experienced an average annual growth rate of 80 percent in each of the past two years and sales are estimated to reach $3.5 million CDN in the current fiscal year.
Cryopak Industries Inc., through its' 100 percent owned subsidiary Cryopak Corp., develops, manufacturers and markets
temperature controlling products and packing systems into a diverse market of perishable product transportation including the
shipping of temperature sensitive pharmaceutical and seafood products. The products have also been introduced into the airline
catering sector as a safe alternative to dry ice in the temperature maintenance of airline food and beverages.
John Morgan, President and CEO of Cryopak Corp. states, "The acquisition of the Northland companies clearly enhances our
potential for rapid expansion through cross-selling opportunities; allows for immediate expansion of our sales force; and will be
accretive to Cryopak earnings resulting in positive cash flow for the combined venture."
As a leading manufacturer of gels and gel packs, Northland will provide additional sales channels that will directly benefit
Cryopak. The addition of gel technology will enhance the total available product line for advanced packaging solutions.
In addition to the standard gel pack, Northland manufacturers hot and cold gel inserts for a major consumer products company
which are sold under their brand. In October of this year, the Company will begin shipping a "comfort gel pack", an application for
retail called "Simply Cozy", to K-Mart. Another retail product with hot and cold applications marketed under the "Equate" brand
name is being sold through WalMart Canada.
Charn Rai, the founder of Northland Ice-Gel and Northland Custom Packaging also shares in the vision for expansion through this
acquisition. Mr. Rai states, "Many of the users of our products also use Cryopak products for shipping. The products can be used
individually or in combination depending on the shipping requirements. The synergy of the products both in terms of sales and
manufacturing efforts will greatly enhance our growth."
Northland was founded in 1989 as a family-owned business with four employees. Today it has 30 employees and provides
products to customers across North America. In addition to its relationship with Cryopak products the company provides contract
packaging services to companies worldwide.
Morgan concludes, "The acquisition of the Northland companies further expands our efforts to become the premier provider of
temperature controlled packing solutions. Our own recent steps towards product branding and development of a retail product line
will obviously be enhanced by this relationship." TEL: (604) 685-3616
Leigh Jeffs, Director Toll Free: (800) 667-2532 FAX: (604) 685-9170 E-Mail: cryopak@cryopak.com Website: www.cryopak.com |
