CCL Industries Inc.

CCL Industries Inc.

March 03, 2009 10:46 ET

CCL Industries to Acquire Wine Label Plant in South Africa

TORONTO, ONTARIO--(Marketwire - March 3, 2009) - CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B), a world leader in label solutions for the consumer packaging and healthcare markets, announced today that it has signed a binding agreement to acquire the shares of Ferroprint Western Cape (Pty) Ltd., a wholly owned subsidiary of Ferroprint (Pty) Ltd., based in Durban, South Africa. Ferroprint Western Cape (Pty) Ltd. will immediately change its trading name to "CCL Label" while its former parent company will continue to trade as "Ferroprint."

The acquired business has a focused factory near Cape Town in the wine growing region of Stellenbosch, South Africa. For the last 12 months estimated revenues were $3.3 million. The debt-cash free purchase price will be $2.7 million representing the approximate value of tangible assets of the acquired company. Final closing is expected to be completed before the end of March.

Geoffrey Martin, President and CEO of CCL Industries commented, "South Africa is a strategic market for our global beverage business which we currently service through a local CCL sales company importing from our European and Australian facilities. This bolt on acquisition will give us a manufacturing presence to build our position in this important beverage market at an attractive valuation for shareholders."

With headquarters in Toronto, Canada, CCL Industries now employs approximately 5,400 people and operates 55 production facilities globally located to meet the sourcing needs of large international customers. CCL Label is the world's largest converter of pressure sensitive and film materials for label applications and sells to leading global customers in the consumer packaging, healthcare, automotive and consumer durable markets. CCL Container and CCL Tube are leading producers of aluminum aerosol cans, bottles and extruded plastic tubes for consumer packaged goods customers in the United States, Canada and Mexico.

Any forward-looking statements contained in this press release, including statements relating to the outlook of CCL Industries Inc.'s various divisions and products and CCL's growth and expansion plans, involve risks, uncertainties and assumptions and should not be taken as guarantees of future performance. A number of factors could cause actual results, performance or achievements to vary materially from those anticipated in forward-looking statements, including: general economic and business conditions and specific conditions affecting the sector in which CCL operates, including pricing pressures; CCL's ability to attract and retain its customer base; technological change; competition; changes in, or failure to comply with, existing government regulations or failure to obtain required permits or licenses; changes in business strategy or development plans; risks associated with operating and product hazards; the ability to attract and retain qualified personnel; and other factors. The forgoing list of factors is not exhaustive of the factors that may affect the actual outcome of events that are the subject of forward-looking statements.

Unless noted otherwise, all amounts are expressed in Canadian dollars.

Contact Information

  • CCL Industries Inc.
    Gaston Tano
    Senior Vice President and Chief Financial Officer
    (416) 756-8526