Vertical Distilling LLC, a Longmont-based contract manufacturer of ready-to-drink beverages operated by CanSource LLC founders Pat Hartman and Ron Popma, was acquired by Canadian co-packager Wildpack Beverage Inc. (TSX-V: CANS ) for $ 4.5 million in cash.
“Colorado is a key geography in the mid-market beverage industry for customers and suppliers,” Wildpack chief growth officer Thomas Walker said in a statement. “Establishing a presence there not only strengthens our strategic business goals in reducing shipping costs and complexity for customers, but it also places us as neighbors to many of our key suppliers. Strengthening these relationships should have a positive impact on our business as we continue to build market share in the spaces we operate. “
According to Wildpack, Vertical Distilling operates on a positive cash flow basis with only one daily manufacturing shift. As part of Wildpack, the company plans to optimize shift work to increase production and expand Vertical’s service offerings by next spring.
“The Colorado facility is expected to become a hub for Wildpack and its customers as Wildpack continues to execute its strategic business plan of creating a network of facilities within a one-day shipping radius of all. major distribution centers of the mid-market beverage industry, ”the company said in a press release.
Hartman and Pompa focused on ready-to-drink beverage companies in late 2019 after the buyout of CanSource by private equity firm Broadtree Partners.
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