NanoXplore announced that it has acquired all of the issued and outstanding shares of Canuck Compounders, a privately held plastic recycling compounder that provides sustainable and engineered recycled plastic compounds for use in transportation, building and construction, agriculture and packaging markets. Canuck's manufacturing facility, based in Cambridge, Ontario, has a production capacity of approximately 40 million pounds annually.
"I am very pleased with this acquisition and would like to welcome Canuck's team to the NanoXplore family," said Dr. Soroush Nazarpour, Chief Executive Officer of NanoXplore. "This acquisition is strategically aligned with our growth initiatives and significantly increases our graphene compounding capability, especially in recycled plastics and will enable us to form strategic partnerships with end customers. In addition, Canuck has a strong relationship with recycled plastic suppliers that ensures a smooth and reliable supply of post-consumer and post-industrial recycled plastics. This transaction will enhance our technical expertise in recycled plastic compounds and bolster our top-line by approximately $20 million annually, without considering revenues derived from graphene inclusion."
NanoXplore paid CAD$7.3 million in cash at the closing of the transaction, while $1 million in cash will be paid in one year and another $1 million will be paid in two years. Following the transaction, William Dickinson, CEO and founder of Canuck, will continue in a role as General Manager, alongside approximately 40 employees.
"We are delighted to join forces with NanoXplore, given the inherent technological and cultural fit between the two companies," Mr. Dickinson said. "Graphene from NanoXplore is highly complementary with our recycled plastic compounds to create innovative solutions like enhanced masterbatch and mixtures, while both management teams are dedicated to delivering best-in-class products across a broad number of growth industries."
On its financial status, Luc Veilleux, Chief Financial Officer of NanoXplore, said: "For fiscal 2022 ending June 30, 2022, we expect annual revenues of about $85 million". "We anticipate that revenues in the second quarter will be in-line with the first quarter of fiscal 2022, followed by progressive growth in the third and fourth quarters due to the Canuck acquisition and improved outlook provided by customers . We also expect to achieve positive EBITDA (1) in the fourth quarter of 2022."