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CCL Industries Acquires Treofan America Inc. and Trespaphan Mexico Holdings GmbH

Published on 2018-03-22. Author : SpecialChem

CCL Industries Acquire Treofan Americas Business
CCL Industries Acquire Treofan Americas Business
CCL Industries Inc. (“the Company”) has announced that it has signed a binding agreement to acquire Treofan America Inc. and Trespaphan Mexico Holdings GmbH from their ultimate parent, M&C S.p.A.

The entities to be acquired represent the “Treofan Americas” business in the United States, Latin America and Canada. M&C S.p.A. would continue to control the equivalent European business through Treofan Germany GmbH & Co. KG and Treofan Italy S.p.A which form no part of this transaction.

The acquired Treofan entities will trade under the Innovia brand name post close with M&C S.p.A. retaining rights to the Treofan name.

Treofan Americas Business

Treofan Americas is one of the leading producers of biaxially oriented polypropylene (“BOPP”) film based in Zacapu, Mexico, with capacity of 60,000 tons for specialty applications in consumer packaging and label markets.

Treofan Americas will install a state-of-the-art 10 meter wide BOPP extrusion line in late 2018 adding 30,000 tons of capacity requiring a significant facility expansion in Mexico.

The Company agreed to reimburse M&C S.p.A. for all cash capital expenditures incurred on this project at closing as an increase to the purchase price.

BOPP Extrusion Line Project

The Treofan Americas will subsequently complete the biaxially oriented polypropylene extrusion line project thereafter as normal course 2018 capital expenditure. The total capital expenditure on the project is estimated at $65 million with approximately 50% cash outlay incurred by the anticipated closing date.

Given the substantial investment plus legacy business growth, the Company is targeting an increase in acquired EBITDA to approximately $55 million by 2021 at current exchange rates.

Geoffrey T. Martin, President and Chief Executive Officer, said:

The proposed acquisition gives Innovia a solid strategic footprint for BOPP films in both North America and Europe with highly complementary technologies and products. The business will be combined with Innovia in the Americas under a common brand and the leadership of Guenther Birkner who heads our label interests globally in the Food & Beverage and Healthcare & Specialty markets as well as this important new strategic initiative in the materials science arena. I’d like to take this opportunity to acknowledge the deeply experienced Treofan Americas people; we are excited about the prospect of them joining our Company and look forward to their contributions as we move forward with this exciting new initiative.”

Source: CCL Industries Inc.
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