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CCL Concludes Two Acquisitions; Increases Stake in a JV

Published on 2016-01-27. Author : SpecialChem

Toronto, Canada -- CCL Industries Inc. (“CCL”), a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers, announced that it has concluded two acquisitions for CCL Label plus increased its stake in one of its joint ventures.

CCL Industries
Fig. 1: CCL Industries

CCL acquired Woelco AG, a supplier of durable labeling systems for Industrial & Automotive customers based near Stuttgart with subsidiary operations in both the United States and China. The $27 million net cash purchase consideration includes a state-of-the-art manufacturing facility held in a related German property company. 2015 sales were $31 million, with adjusted EBITDA of approximately $4.5 million. Dieter Woelfle, the principal shareholder of Woelco, will be appointed Managing Director of the European Industrial & Automotive label business under the CCL Design identity, reporting to Peter Fleissner, Group Vice President.

In addition, CCL acquired Label Art Ltd. and Label Art Digital Ltd., privately owned companies with common shareholders, based in Dublin, Ireland. Label Art is a leading pressure sensitive label producer in Ireland with a focus on Healthcare & Specialty customers in Ireland and the UK. 2015 sales were $17 million with adjusted EBITDA of approximately $3 million. The agreed purchase consideration in acquired debt and cash is $15 million, subject to customary closing adjustments. The new business will trade as CCL Label Ireland with immediate effect.

Finally, CCL invested $6 million in cash to increase its stake to 75% in the tube
manufacturing joint venture in Bangkok, Thailand, with Taisei Kako Co. Ltd. of Japan. As
CCL now has management control of this operation, 2016’s results will be consolidated with CCL Label’s Home & Personal Care business with a minority interest adjustment. CCLTaisei’s 2015 sales were nominal with start-up costs.

Geoffrey T. Martin, President & CEO of CCL, commented, “We have known the management of Label Art for many years and welcome them and the deeply experienced Woelco team to CCL. These acquisitions bring strategically important new geography and capability to our Healthcare & Specialty and CCL Design businesses respectively. Our increased investment in CCL Taisei strengthens our growing commitment to our tube product line globally for Home & Personal Care customers while maintaining an important partnership and market presence
in Japan.”

About CCL Industries


CCL Industries employs more than 13,000 people operating 119 production facilities in 31 countries on 6 continents with corporate offices in Toronto, Canada and Framingham, Massachusetts. CCL Label is the world’s largest converter of pressure sensitive and extruded film materials for a wide range of decorative, instructional and functional applications for large global customers in the consumer packaging, healthcare & chemicals, consumer durable, electronic device & automotive markets.

Extruded & laminated plastic tubes, folded instructional leaflets, precision decorated & die cut components, electronic displays and other complementary products and services are sold in parallel to specific end-use markets. Avery is the world’s largest supplier of labels, specialty converted media and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors and mass market retailers. CCL Container is a leading producer of impact extruded aluminum aerosol cans and bottles for consumer packaged goods
customers in the United States and Mexico. CCL partly backward integrates into materials science with capabilities in polymer extrusion, adhesive development and coating, surface engineering and metallurgy that are deployed across all three business segments.

Forward-looking Statements

This press release contains forward-looking information and forward-looking statements (hereinafter collectively referred to as “forward-looking statements”), as defined under applicable securities laws, that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans” or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the integration of these acquisitions by CCL.

Source: CCL Industries

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