MONTREAL, May 1, 2018 /CNW Telbec/ - Supremex Inc. ("Supremex" or the "Company") (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of packaging and specialty products, today announced that it has concluded the acquisition of Groupe Deux Printing Inc. ("G2" or "G2 Printing") and its related company Pharmaflex Labels Inc. ("Pharmaflex") of Laval, QC, a leading manufacturer of premium quality folding carton packaging and labels primarily for the pharmaceutical industry. The transaction was concluded for total cash consideration of $11.25 million on a cash-free and debt-free basis subject to customary adjustments for working capital and other items.

"With packaging representing close to 30% of our revenues on a pro-forma basis, we are now one step closer to reach our 50/50 diversification objectives, which is critical to our long-term success as the secular decline in the Canadian envelope market continues," said Stewart Emerson, President & CEO of Supremex.

"The acquisition of G2 and Pharmaflex perfectly complements our previous packaging acquisitions and growing labels business. We can now provide a complete range of packaging solutions to the pharmaceutical industry including related inserts, leaflets and labels, essentially becoming a one-stop-shop for our growing multinational customer base in the pharmaceutical, cosmetics and food industries," added Mr. Emerson.

"Over the last 40 years, with the help of a team of dedicated employees, our family has built a leading manufacturer of premium folding cartons renowned for our superior quality and service. We are now delighted to be part of the growing Supremex family. With access to their manufacturing and distribution platform in Canada and the U.S., we expect to expand our reach and continue to grow," said Giancarlo Mirabelli, who assumes the role of Director, Business Development – Folding Carton at Supremex.

G2 is a family-owned fully integrated manufacturer of superior quality folding cartons with annual revenues of approximately $12 million on a last-twelve-month basis, including its related labels business, Pharmaflex. It employs approximately 60 people at two state-of-the-art facilities located in Laval, Quebec. Its customers include some of the largest multinational companies operating in the pharmaceutical and cosmetics industries. G2 is known for its in-house pre-press operations and leading-edge manufacturing and printing technology.

Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the EBITDA and adjusted EBITDA and future performance of Supremex and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such information relates to future events or future performance and reflects current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and liability to attract and retain customers. Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this press release. Such assumptions, expectations and estimates are discussed throughout our MD&A for the year ended December 31, 2017.

Forward-looking information is subject to certain risks and uncertainties, and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking information. These risks and uncertainties include but are not limited to the following: economic cycles, availability of capital, decline in envelope consumption, increase of competition, exchange rate fluctuations, raw material increases, credit risks with respect to trade receivables, increases in funding requirement of the Company's pension plans, postal services deficiencies, interest rates fluctuations and potential risk of litigation. Such risks and uncertainties are discussed throughout our MD&A for the year ended December 31, 2017 and in particular, in "Risk Factors". Consequently, we cannot guarantee that any forward-looking information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The Management Discussion and Analysis and Financial Statements can be found www.sedar.com and on Supremex' website.

About Supremex

Supremex Inc. is a leading North American manufacturer and marketer of envelopes and a growing provider packaging and specialty products. Supremex operates facilities across seven provinces in Canada and three facilities in the United States employing approximately 865 people. Supremex' growing footprint allows it to efficiently manufacture and distribute paper and packaging solutions designed to the specifications of major national and multinational corporations, resellers, government entities, SMEs and solutions providers. For more information, please visit www.supremex.com.

SOURCE Supremex Inc.

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