Black Swan Graphene Inc. (SWAN-X) plans to acquire Quebec injection moulding company Falpaco Rubber and Plastics Inc. for $12.6 million to vertically integrate production of graphene-enhanced rubber and plastic parts.

On Monday morning, Toronto-based graphene producer Black Swan announced it has entered into a definite agreement for the transaction.

The deal represents “a key step in Black Swan's strategy to accelerate the commercialization of graphene products,” according to the release. 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 moulding 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 release. 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.

Sustainable Biz Canada has reached out to Black Swan for comment. We will update this article with any additional information if it becomes available.

About Falpaco, Black Swan

Based in Granby, Falpaco is located in an industrial park of the town southeast of Montreal. The company of approximately 45 full-time employees offers a variety of injection moulding services for several industries.

Falpaco’s manufacturing profile is said to be a strong match for Black Swan because it mainly works with polymers for which Black Swan's graphene solutions have shown “particularly strong performance benefits.”

Graphene, a honeycomb-shaped array of carbon atoms, has been explored by various industries for its extraordinary strength and conductivity with sustainability benefits. For example, it could be mixed into plastics to boost durability while also being lighter, reducing plastic consumption.

Graphene has been used for similar purposes in concrete to cut the carbon emissions related to the material.

Black Swan tested its graphene in consumer packaging and auto parts last year, with potential applications in PET bottles, films and plastic piping.

A second reason Black Swan gave 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 production from 40 tonnes per year to over 140 tonnes.

Falpaco currently generates approximately $7.4 million in annual sales, with a compound annual growth rate of approximately seven per cent over the past five years, Black Swan said. The addition of Black Swan’s graphene solutions is anticipated to arm Falpaco with 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.”