CCL Industries Inc.

CCL Industries Inc.

February 01, 2008 08:27 ET

CCL Industries Acquires CD Design GmbH; Creating a New Business Platform for CCL

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2008) - CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B), a world leader in specialty packaging solutions for the consumer products and healthcare industries, announced today that it has acquired CD Design GmbH, a privately owned company based in Solingen, Germany. CD Design's principal shareholders also control Ritrama S.p.A., a privately owned Italian manufacturer of pressure sensitive materials with operations in Europe, USA, China and Chile. Ritrama is an important supply partner to CCL Label in a number of its markets.

CD Design converts pressure sensitive films and aluminum for leading automotive OEMs in Germany and other European markets. Products include regulatory informational labels, branding badges and functional products that improve component durability and design. The Company had sales of approximately $26 million in 2007. CCL will pay an initial purchase price of $10 million in a combination of cash and assumed debt, and potentially a further $4.5 million in cash at the end of 2008 subject to EBITDA exceeding $2.6 million for this calendar year. As part of the transaction, CD Design signed a new five-year supply agreement to continue deploying Ritrama's materials and to collaborate in the durable goods market.

Geoffrey Martin, President and COO of CCL Industries said, "Consumer Durable Goods manufacturers including automotive, mobile communication, information technology, consumer electronic and domestic appliance OEMs all use the technologies and products we use at CCL Label for branding and communicating regulatory or instructional information. We believe this is an interesting new customer segment in which to expand the CCL franchise as it has the same hallmarks as our existing business: large customers seeking globally deployed suppliers in a fragmented industry. CD Design is a supplier highly regarded by some of the most demanding customers in the segment and we are delighted to have it as a founding business from which we could potentially build a new global segment for the company."

Donald Lang, Vice Chairman and CEO of CCL Industries added. "This is an exciting new development for us in a technology arena our people already understand. The investment is consistent with our valuation principles for transactions and its size represents a reasonable risk-reward ratio to shareholders for our entry into an interesting new customer segment."

With headquarters in Toronto, Canada, CCL Industries now employs approximately 5,400 people and operates 52 production facilities in North America, Europe, Latin America and Asia. CCL Label is the world's largest converter of pressure sensitive and film materials and sells to leading global customers in the consumer packaging, healthcare, and consumer durable segments. CCL Container and CCL Tube produce aluminum cans, bottles and plastic tubes for the consumer products industry in North America.

Statements contained in this Press Release, other than statements of historical facts, are forward-looking statements subject to a number of uncertainties that could cause actual events or results to differ materially from some statements made.

Conference Call

CCL will hold a conference call at 10:00 a.m. EST on Monday, February 4, 2007 to discuss this transaction and CCL's Russian joint venture January 2, 2008 announcement.

To access this call, please dial:
Toll-Free North America - 1-800-926-4951
Domestic and International - 212-231-2902

Post-View service will be available from Monday, February 4, 2008 at 12:00 p.m. EST until Tuesday, March 5, 2008 at 11:59 p.m. EST

Dial: Toll-Free North America - 1-800-558-5253
Domestic and International - 416-626-4100
Access Code: 21374521

Contact Information

  • CCL Industries Inc.
    Steve Lancaster
    Executive Vice President
    (416) 756-8517