Stock Symbol: TSX - CCL.A and CCL.B
TORONTO, March 17 /CNW/ - CCL Industries Inc., a world leader in
specialty packaging solutions for the consumer products and healthcare
industries, announced today that it has signed a binding agreement to acquire
Clear Image Labels Pty Ltd., a privately owned label company based in
Australia. Clear Image supplies pressure sensitive labels to the Australian
wine industry with plants in Sydney, New South Wales and the Barossa Valley in
South Australia where 60% of the country's wine is produced. Customers of the
business are entirely based in the wine industry. The company also exports
labels to wine producers in the United States.
CCL Industries will pay $34 million in a combination of cash, restricted
stock and absorbed debt to acquire the business and a freehold property in the
Barossa Valley. In its current trading year, which ends June 30, 2008, Clear
Image is expected to generate sales of approximately $21 million and adjusted
EBITDA of approximately $5.5 million. Closing is expected to occur in the next
month after certain administrative procedures are completed.
Geoffrey Martin, President and COO of CCL Industries said, "We have been
looking closely at the situation in the wine industry for the last couple of
years and are very pleased to have found a business with a strong market
position and a highly capable management team headed by Scott Springett, Clear
Image's Managing Director and major shareholder. I am pleased to say that
Scott will be remaining with the business and helping us grow the position he
and his team have established into a new global segment for CCL Label. They
will also act as a vehicle to sell specialty CCL Label products in Australia."
Donald Lang, Vice Chairman and CEO of CCL Industries added, "This is an
interesting transaction for CCL as it simultaneously expands our geographic
footprint and also takes us into a new segment of the beverage industry which
has exhibited above average growth rates."
With headquarters in Toronto, Canada, CCL Industries now employs
approximately 5,500 people and operates 54 production facilities in North
America, Europe, Latin America and Asia Pacific. CCL Label is the world's
largest converter of pressure sensitive and film materials and sells to
leading global customers in the consumer packaging, healthcare, and consumer
durable segments. CCL Container and CCL Tube produce aluminum cans, bottles
and plastic tubes for the consumer products industry in North America.
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,
(416) 756-8517; For more details on CCL, visit our website - www.cclind.com