SOURCE: CCL Industries Inc.

CCL Industries Inc.

August 31, 2016 11:06 ET

CCL Industries Announces Bolt on Healthcare Acquisition in Northern Ireland

TORONTO, ON--(Marketwired - August 31, 2016) - CCL Industries Inc. ("CCL") (TSX: CCL.A) (TSX: CCL.B), a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers, announced today that it has acquired all the outstanding shares of Labelone Ltd. ("Label1"), a privately held company based in Belfast, Northern Ireland. Label1 is a leading converter primarily focused on the Healthcare industry in Northern Ireland. Sales for the annualized period ending March 31, 2016, were approximately $10.7 million, with an adjusted estimated EBITDA of $3.0 million. Purchase price consideration, including assumed debt, is approximately $17.7 million, subject to customary closing adjustments, including acquisition of real estate.

Guenther Birkner, President Food & Beverage/Healthcare & Specialty Worldwide, and CCL's top executive in Europe, commented, "We are pleased to welcome Label1's Managing Director, Michael McGarry and his team to CCL. Michael has deep industry experience and knowledge of the Irish label market and will take over management of our Dublin operation to maximize opportunities in an important country for our Healthcare business in Europe. Label1 will change its trading identity to CCL Label effective immediately post-closing."

Geoffrey T. Martin, President and CEO of CCL Industries, concluded, "A number of us at CCL Label have known Michael and his company for many years and we are fortunate to have Label1 join our important Healthcare franchise."

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 this acquisition by CCL.

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 after-effects of the 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 results 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 sectors and entering into new sectors; 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; 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 Management's Discussion and Analysis section of CCL's 2015 Annual Report, 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.

CCL Industries employs more than 19,000 people operating 150 production facilities in 34 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 and chemicals, consumer durable, electronic device and automotive markets. Extruded and laminated plastic tubes, folded instructional leaflets, precision decorated and 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. Checkpoint is a leading manufacturer of radio frequency based hardware, software and labeling solutions, including RFID, for loss prevention, inventory management, branding and merchandising applications for global retail and apparel customers. 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 four business segments.

Contact Information

  • For more information, contact:

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

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

    For more details on Label1 visit www.labelone.com