CCL Industries Inc.
TSX : CCL.A
TSX : CCL.B

CCL Industries Inc.

December 18, 2008 14:02 ET

CCL Industries to Acquire Eltex Gmbh and Expand Its Position in the Durable Label Business

TORONTO, ONTARIO--(Marketwire - Dec. 18, 2008) - CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B), a world leader in labelling solutions for the consumer packaging and healthcare markets, announced today that it has signed a binding agreement to acquire Eltex GmbH based in Solingen, Germany. The company supplies a patented pressure sensitive label solution which replaces solid aluminum riveted rating plates widely used in the automotive, consumer durable and information technology hardware markets.

For the calendar year of 2008 estimated revenues for Eltex are $9.7 million with an anticipated EBITDA of approximately $1.5 million. The debt-cash free purchase price on closing will be approximately $5.4 million. Completion of the transaction will occur on December 31st 2008.

Geoffrey Martin, President and CEO of CCL Industries commented, "Eltex will be merged with CD-Design, the business we acquired earlier this year, now renamed CCL Design, which markets highly complimentary products to the same industry sector. Coincidentally, CCL Design and Eltex are located in the same industrial park in Germany. We will continue to use the Eltex brand name for the patented product line the business produces and plan to make it available on a global basis. We are delighted that the management of the business will remain with us and become part of CCL Design." Mr. Martin added, "This acquisition demonstrates our ability to continue finding situations in the label sector that meet both our strategic and financial criteria to enhance shareholder value."

With headquarters in Toronto, Canada, CCL Industries now employs approximately 5,300 people and operates 54 production facilities globally located to meet the sourcing needs of large international customers. CCL Label is the world's largest converter of pressure sensitive and film materials for label applications and sells to leading global customers in the consumer packaging, healthcare, automotive and consumer durable markets. CCL Container and CCL Tube are leading producers of aluminum aerosol cans, bottles and extruded plastic tubes for consumer packaged goods customers in the United States, Canada and Mexico.

Any forward-looking statements contained in this press release, including statements relating to the outlook of CCL Industries Inc.'s various divisions and products and CCL's growth and expansion plans, involve risks, uncertainties and assumptions and should not be taken as guarantees of future performance. A number of factors could cause actual results, performance or achievements to vary materially from those anticipated in forward-looking statements, including: general economic and business conditions and specific conditions affecting the sector in which CCL operates, including pricing pressures; CCL's ability to attract and retain its customer base; technological change; competition; changes in, or failure to comply with, existing government regulations or failure to obtain required permits or licenses; changes in business strategy or development plans; risks associated with operating and product hazards; the ability to attract and retain qualified personnel; and other factors. The forgoing list of factors is not exhaustive of the factors that may affect the actual outcome of events that are the subject of forward-looking statements.
Unless noted otherwise, all amounts are expressed in Canadian dollars.

For more details on Eltex visit their website - www.eltex-ident.com

Contact Information

  • CCL Industries Inc.
    Gaston Tano
    Senior Vice President and Chief Financial Officer
    (416) 756-8526
    Website: www.cclind.com