SOURCE: CCL Industries Inc.

CCL Industries Inc.

January 21, 2016 08:00 ET

CCL Industries Announces Three Transactions for CCL Label

TORONTO, ON--(Marketwired - January 21, 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 concluded two acquisitions for CCL Label plus increased its stake in one of its joint ventures.

CCL acquired Woelco AG, a supplier of durable labeling systems for Industrial & Automotive customers based near Stuttgart with subsidiary operations in both the United States and China. The $27 million net cash purchase consideration includes a state-of-the-art manufacturing facility held in a related German property company. 2015 sales were $31 million, with adjusted EBITDA of approximately $4.5 million. Dieter Woelfle, the principal shareholder of Woelco, will be appointed Managing Director of the European Industrial & Automotive label business under the CCL Design identity, reporting to Peter Fleissner, Group Vice President.

In addition, CCL acquired Label Art Ltd. and Label Art Digital Ltd., privately owned companies with common shareholders, based in Dublin, Ireland. Label Art is a leading pressure sensitive label producer in Ireland with a focus on Healthcare & Specialty customers in Ireland and the UK. 2015 sales were $17 million with adjusted EBITDA of approximately $3 million. The agreed purchase consideration in acquired debt and cash is $15 million, subject to customary closing adjustments. The new business will trade as CCL Label Ireland with immediate effect.

Finally, CCL invested $6 million in cash to increase its stake to 75% in the tube manufacturing joint venture in Bangkok, Thailand, with Taisei Kako Co. Ltd. of Japan. As CCL now has management control of this operation, 2016's results will be consolidated with CCL Label's Home & Personal Care business with a minority interest adjustment. CCL-Taisei's 2015 sales were nominal with start-up costs.

Geoffrey T. Martin, President & CEO of CCL, commented, "We have known the management of Label Art for many years and welcome them and the deeply experienced Woelco team to CCL. These acquisitions bring strategically important new geography and capability to our Healthcare & Specialty and CCL Design businesses respectively. Our increased investment in CCL Taisei strengthens our growing commitment to our tube product line globally for Home & Personal Care customers while maintaining an important partnership and market presence in Japan."

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 these acquisitions 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 2014 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 13,000 people operating 119 production facilities in 31 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 & chemicals, consumer durable, electronic device & automotive markets. Extruded & laminated plastic tubes, folded instructional leaflets, precision decorated & 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. 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 three 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 Woelco visit www.woelco.com

    For more details on Label Art visit www.labelart.ie