04. Jan 2017

Solegear acquires packaging company LINDAR’s Bioplastic Division

Solegear acquires packaging company LINDAR’s Bioplastic Division

We're still catching up on December news, so here’s what Solegear Bioplastic Technologies Inc. was doing during the very last week of last year:

The Canada-based producer of plant-based plastics announced that it was acquiring 100% of LINDAR Corporation's bioplastic division for CAD$845,000, comprising 4,225,000 common shares of the Company at a deemed price of $0.20 per share.

Thermoformed packagingLINDAR is a leading manufacturer of plastic thermoformed food packaging, trays and products for industrial OEM industries. Located in Minnesota (USA), the company has been producing thermoformed packaging since 1993 and is a leader in packaging innovations, including single-serve and tamper evident food packaging.

"The food industry has been most significantly impacted by consumer and regulatory concerns about safety," said Paul Antoniadis, CEO of Solegear.

"LINDAR was one of the early innovators to embrace the important role packaging design can play in ensuring food safety. By combining LINDAR's thermoformed packaging know-how with Solegear's commitment to engineering plant-based materials with no BPAs or phthalates, this acquisition positions Solegear with the people, infrastructure, products and pricing to further scale our business at a faster rate."

For LINDAR, the acquisition by Solegear will make it possible  to create scale and engage more customers about what is possible with plant-based packaging. "Something that is much easier to achieve with Solegear than on our own," said Tom Haglin, President of LINDAR. "As LINDAR's bioplastic division becomes part of the Solegear family, LINDAR will be able to capitalize on this business association by introducing new and expanded products with greater capabilities."

Solegear & LINDAR have also agreed to negotiate and enter into an outsourced operating agreement (the "Outsourcing Agreement") under which LINDAR will provide certain management, operational, financing, marketing, sales, logistics, warehousing and other support services to the Company. The LINDAR team will continue to market and sell bioplastic packaging, making the transition seamless for LINDAR's existing bioplastic customers, which includes a wide range of US retailers and food producers.

The purchased assets generated over CAD$1.3 million in revenue in 2015.

Revenues generated from the purchased assets are expected to be accretive to Solegear during the current fiscal year. Issuance of the Shares to LINDAR is conditional upon execution of the Outsourcing Agreement, and completion of the Asset Purchase remains subject to TSX Venture Exchange approval. The Shares will be issued from treasury and subject to a 24 -month hold period from the signing date of the Outsourcing Agreement.

http:// www.solegear.ca

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