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Tapp recapitalization brings new majority

July 20, 2005

Tapp Technologies Inc., a label converter based in Langley, BC, Canada, announced a major recapitalization in late February. Under the terms of the recapitalization, a group of investors led by Pender West Capital Partners Inc., a private equity firm in Vancouver, BC, made a significant capital injection into the company and will hold a majority position in Tapp.
Tapp is known for producing award-winning labels primarily for boutique wineries in the Pacific Northwest.
Pender West’s investment in Tapp will be held and managed through Select Label Investments Inc. As part of the recapitalization, Jay Tapp, founder and vice chairman of Tapp, becomes president of Select Label Investments. Mike Huntsinger, who is responsible for day to day operations at Tapp, has been promoted to chief operating officer.
“With the support of Pender West we are now very well positioned to continue leading our industry in numerous areas,” says Tapp. “We intend to capitalize on a number of significant opportunities to expand our geographical focus, increase the range of label solutions we can offer our customers and continue our lead in technological innovation.”
“Tapp will continue its philosophy of providing the highest level of product quality as well as unequaled service. There are significant opportunities for us to continue growing our business and providing our customers with top quality innovative label solutions,” stated Mr. Huntsinger. “We are very excited about what lies ahead for our company,” added Mr. Huntsinger.
Tapp supplies labels to North American wine, food and pharmaceutical industries. It owns four manufacturing facilities: two in the Vancouver region; one in Portland, OR, and one in Napa, CA. Tapp’s principal customers are commercial wineries on the US West Coast, the majority in northern California. Tapp’s printing technologies range from waterless offset lithography, flexography, and digital offset.
Last year the company won Best of Show for its Ponzo Vineyard Zinfandel label in the annual TLMI label award competition. Tapp has won 40 TLMI label awards in the past five years.
In 2003 Tapp acquired a controlling interest in Adams Label & Tag, a flexo printer in nearby Surrey, BC, with its own panoply of label industry awards. With that acquisition came Apex Labels in Oregon. Tapp also has had an operation in Napa, CA, where its two HP Indigo digital presses are installed.
Adams had been owned by Premium Brands, a Canadian public company. Premium held a 20