Stock Symbol: TSX - CCL.A and CCL.B
TORONTO, Nov. 20 /CNW/ - CCL Industries Inc., 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.
For further information:
For further information: Steve Lancaster, Executive Vice President and
Chief Financial Officer, (416) 756-8517; For more details on CCL, visit our
website - www.cclind.com