TORONTO — Easton Pharmaceuticals, Inc. has acquired Supreme Sweets Inc. and 2498411 Ontario Inc. from founders Barbara and Mario Parravano for a combination of cash and Easton stock. Financial terms of the transaction were not disclosed.
Headquartered in Toronto, Supreme Sweets makes traditional baked foods, including gluten-free and keto products, at its 40,000-square-foot facility in Toronto. The company supplies baked foods to major grocery retailers in North America, as well as specialty coffee chains, under its own brands and as a contract packer. Products include donuts, cookies, croissants, cakes, brownies, chips, bagels, bread, pies and tarts.
Easton said the acquisition fits into its strategy to enter the cannabis edibles market while continuing to grow the traditional baked foods business with new specialty product launches. Easton said it expects sales to reach $20 million over the next 12 months with increasing margins once economies of scale begin to take effect. Looking ahead, Easton said it sees potential to grow baked food sales to $50 million per year and expects the company’s edible division to reach $100 million.
“We are very pleased to have completed our acquisition of Supreme Sweets and are very excited for the direction of the company,” said Evan Karras, chief executive officer of Easton. “This acquisition forms part of our strategic growth plan to add shareholder value and will give Easton the platform to enter the cannabis industry.”
Easton Pharmaceuticals is a diversified company with interests in a variety of segments, including food and beverage, real estate development and gaming.