Black Swan Graphene has announced plans to acquire Quebec injection molding company Falpaco Rubber and Plastics Inc. for CAD$12.6 million (around USD$9.2 million) to vertically integrate production of graphene-enhanced rubber and plastic parts.
The deal represents “a key step in Black Swan's strategy to accelerate the commercialization of graphene products,” according to the statement. Black Swan plans to vertically integrate downstream manufacturing capabilities and move closer to end customers by combining its graphene materials and expertise with Falpaco’s injection molding and market base. The combination could shorten development cycles and accelerate the transition from product validation to commercial adoption, Black Swan said.
"This expansion into downstream manufacturing represents a natural extension of our commercialization strategy,” Simon Marcotte, president and CEO of Black Swan, said in the statement. He also called the acquisition a “compelling operational and financial fit, with graphene acting as a catalyst for growth and value creation within an already well-established business.”
The acquisition is expected to close in Q2, subject to customary conditions and the approval of the TSX Venture Exchange. Falpaco is expected to effectively become a wholly owned subsidiary of Black Swan upon closing of the deal.
Black Swan tested its graphene in consumer packaging and auto parts last year, with potential applications in PET bottles, films and plastic piping.
An additional reason for the acquisition is that Falpaco operates as a value-added partner to its customers. Falpaco often advises on product design, development, material selection and performance enhancement, Black Swan said, creating a “natural pathway for integrating graphene-based enhancements into both existing and future customer products.”
Black Swan produces graphene from a facility in the U.K. Last week, the company announced it finished the expansion of production at its facility in Consett, more than tripling its production capacity.
Falpaco currently generates approximately $7.4 million in annual sales, with a compound annual growth rate of approximately seven percent over the past five years, Black Swan said. The addition of Black Swan’s graphene solutions is anticipated to give Falpaco a competitive advantage.
"This transaction opens the door for Falpaco and its customers to benefit from advanced graphene-based solutions, while preserving the entrepreneurial and technical culture that has driven our success,” Claude Robichaud, president of Falpaco, said. “We all look forward to working closely with the Black Swan team to bring innovative, high-performance products to market.”
