CCL Industries Inc.

CCL Industries Inc.

November 20, 2007 12:52 ET

CCL Industries Completes Sale of Its 40% Interest in European Joint Venture

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2007) -

Attention Business Editors:

CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B), a world leader in specialty packaging and labelling solutions for the consumer products and healthcare industries, announced today it has completed the sale of its 40% interest in its European joint venture, ColepCCL Portugal - Embalagens e Enchimentos S.A. to its majority partner, RAR - Sociedade de Controle (Holding), S.A., based in Portugal, which was announced October 4, 2007.

CCL will receive a total of $145 million for its interest in the joint venture. Fifty percent of the sale price was received today, with the remaining 50%, supported by a bank guarantee with a major European financial institution, to be paid at the end of February 2008. Including dividends received, CCL has almost doubled its return on its original investment made three and a half years ago. ColepCCL has retained all of the net debt in the business, reducing CCL's debt by approximately $26 million.

In 2006, CCL's proportional share of ColepCCL's sales was $182.7 million and the joint venture contributed $18.0 million of earnings before interest and taxes and $25.5 million in EBITDA to CCL's financial results.

Donald G. Lang, Vice Chairman and Chief Executive Officer of CCL Industries Inc. said, "Over the last five years, CCL has consistently delivered improved results with focused strategic capital investments in our core businesses and bolt on acquisitions at CCL Label, which have met our financial hurdles. The proceeds from this transaction provide us with more flexibility to accelerate building the great franchises in our portfolio, which now make CCL a pure global specialty packaging company."

CCL manufactures pressure sensitive, shrink sleeve and in-mould labels, aluminum containers and plastic tubes for leading global companies in the home and personal care, healthcare and specialty food and beverage sectors. With headquarters in Toronto, Canada, CCL Industries employs approximately 5,000 people and operates 49 production facilities in North America, Europe, Latin America and Asia.

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.

Contact Information

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