Supremex Inc. (TSX: SXP), a Montréal-based manufacturer and marketer of a range of stock and custom envelopes and related products, has terminated discussions with its principal shareholder Clarke Inc. about a possible going-private transaction. Under the terms of the previously announced proposal, Clarke would have acquired all additional company shares for a purchase price of $1.20 per share, or about $19 million. The Halifax, Nova Scotia-based Clarke is an investor in private and public businesses.
Supremex Inc. and Clarke Inc. Terminate Discussions Regarding Non-Binding Acquisition Proposal
MONTREAL, QUEBEC, Aug 12, 2013 (Marketwired via COMTEX) — Supremex Inc., Canada’s largest provider of stock and custom-manufactured envelopes, today announced the termination of its discussions with its principal shareholder, Clarke Inc., regarding Clarke’s non-binding proposal, announced on March 25, 2013, to acquire all of the outstanding shares that it does not already own in Supremex.
The Special Committee of independent directors established by the Board of Directors of Supremex has reviewed the terms of Clarke’s non-binding proposal with advice from its legal counsel and an independent valuator and has held several discussions with Clarke’s representatives over the last four months. It has now become clear that the parties will not be able to reach an agreement on the price to be offered to shareholders of Supremex for their shares. Therefore, the Special Committee and Clarke have decided to terminate their discussions regarding Clarke’s non-binding proposal.
In light of the termination of the discussions with Clarke, the Special Committee has been dissolved by the Board of Directors.
Supremex Inc. is Canada’s largest manufacturer and marketer of a broad range of stock and custom envelopes and related products. Supremex is the only national envelope manufacturer in Canada, with facilities across six provinces and employs approximately 525 people. This nationwide presence enables it to manufacture products tailored to the specifications of major national customers such as leading Canadian corporations, national resellers and governmental entities, as well as paper merchants and process and solutions providers.
Gilles Cyr, CPA, CA
President and Chief Executive Officer
Photo courtesy of Shutterstock.