Business
Supremex enters into Multi-Year $27 million Sales Agreement
MONTREAL , July 29, 2014 /CNW Telbec/ - Supremex Inc., Canada's largest provider of sto...
About this update from Supremex Inc.
[{"type":"text","content":"\n\nMONTREAL, July 29, 2014 /CNW Telbec/ - Supremex Inc., Canada's largest provider of stock and custom-manufactured envelopes (TSX: SXP), today announced that it has entered into a multi-year agreement valued at approximately $9 million per year to supply packaging products to a customer in the U.S.  \n\nThe initial term of the agreement is three years with renewal options that could extend the agreement for up to an additional six years. Supremex anticipates that sales under the agreement will start to ramp-up at the end of the fourth quarter of fiscal 2014. To execute this agreement, the Company will invest approximately $1 million in CAPEX during the second half of fiscal 2014.\n\n\"This multi-year agreement certainly validates our focus on related packaging markets both in Canada and the US.  In addition to the benefits of a lower Canadian dollar, market conditions and opportunities south of the border have improved with some reduced capacity and changes to the competitive environment. This situation is translating into many more quotation opportunities for us,\" said Stewart Emerson, President and Chief Operating Officer of Supremex.\n\nForward-Looking StatementsThis press release contains \"forward-looking statements\" within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the EBITDA projection, future performance of Supremex and similar statements concerning anticipated future results, circumstances, performance or expectations. A statement is forward-looking when it uses what Supremex knows and expects today to make a statement about the future. Forward-looking statements may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. These statements relate to future events or future performance and reflect 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 statements reflect current assumptions, expectations and estimates of management and are based on information currently available to Supremex as at the date of this press release. \n\nForward-looking state...