SOURCE: CCL Industries Inc.

CCL Industries Inc.

December 03, 2014 08:30 ET

CCL Industries Acquires German Wine Label Company & Launches E-Commerce Label Business

TORONTO, ON--(Marketwired - December 03, 2014) -  CCL Industries Inc. ("CCL"), a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers, announced today that it has acquired Druckerei Nilles GmbH and its related subsidiaries ("Nilles"), a private company located in the heart of the German wine producing region on the River Mosel. In addition to its wine label business, Nilles enables European customers in many other end-use markets to purchase custom designed labels online using proprietary e-commerce software, more than 500 domain names and digital printing. Nilles' 2014 sales are estimated to be approximately $15.7 million with an adjusted EBITDA of $2.7 million. The transaction enterprise valuation is $17.3 million in cash, assumed debt, pension liabilities and deferred equity compensation.

Geoffrey T. Martin, President & CEO of CCL Industries Inc., commented, "We are delighted to welcome the Nilles family to CCL. This acquisition complements our growing presence in an important global market; Germany is the eighth largest wine producing country in the world posting consistent growth over the last five years. The Nilles wine label business will trade as CCL Label from the beginning of 2015 and report into the Food & Beverage sector headed by Guenther Birkner, President. The e-commerce initiative will continue to be headed by James Nilles and become a new business unit of Avery Europe led by Mark Cooper, Vice President & Managing Director."

Mr. Martin continued, "The Nilles e-commerce platform complements the 'WePrint™' initiative Avery recently launched in the United States on www.avery.com. This new service gives consumers and small businesses options to either print labels and cards from our cloud-based online design tool using pre-formatted Avery products on their own desk top printers, or to have them professionally produced and shipped directly from Avery. Nilles offers a similar online service to higher volume customers with more complex label requirements on a roll, in special sizes and materials. Ultimately we expect to make both of these new capabilities available on a global basis using either our Avery brand or one of the many domain names owned by Nilles such as www.label.co.uk and www.etikett.de. This expands the role of our Company, direct marketing quick response capability to all kinds of end-use label customers, taking advantage of our scale as the largest user of digital print engines for labels in the world combined with our proprietary online design software and e-commerce tools."

CCL Industries now employs approximately 10,300 people and operates 98 production facilities in 28 countries on five 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, automotive and consumer durables markets. Extruded and laminated plastic tubes, folded instructional leaflets, precision printed and die cut metal components with LED 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 office 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, Canada and Mexico.

This press release contains forward-looking information and forward-looking statements, as defined under applicable securities laws, (hereinafter collectively referred to as "forward-looking statements") 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 global introduction of "Nilles" and Avery products. Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the evolving global financial crisis and its impact on the world economy and capital markets; the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological change; changes in government regulations; risks associated with operating and product hazards; and CCL's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual strategy could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: global economic recovery and higher consumer spending; improved customer demand for the Company's products; continued historical growth trends, market growth in specific segments and entering into new segments; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum costs; the availability of cash and credit; fluctuations of currency exchange rates; the Company's continued relations with its customers; and general business and economic conditions. Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found in the 2013 MD&A, particularly under Section 4: "Risks and Uncertainties." CCL's annual and quarterly reports can be found online at www.cclind.com and www.sedar.com or are available upon request. Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on CCL's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.

For more details on CCL, visit our website www.cclind.com

For more details on Avery WePrint™, visit www.avery.com/weprint

For more details on the Nilles e-commerce system, visit www.label.co.uk

Contact Information

  • For more information, contact:

    Sean Washchuk 
    Senior Vice President and Chief Financial Officer
    416-756-8526