Business
CCL Industries Acquires CD Design GmbH Creating a New Business Platform for CCL
Stock Symbol: TSX - CCL.A and CCL.B TORONTO, Feb. 1 /CNW/ - CCL Industries Inc., a world leader i...
About this update from Ccl Industries Inc. Class A
[{"type":"text","content":"\n\n\n\nStock Symbol: TSX - CCL.A and CCL.B\n\n\nTORONTO, Feb. 1 /CNW/ - CCL Industries Inc., a world leader in specialty\npackaging solutions for the consumer products and healthcare industries,\nannounced today that it has acquired CD Design GmbH, a privately owned company\nbased in Solingen, Germany. CD Design's principal shareholders also control\nRitrama S.p.A., a privately owned Italian manufacturer of pressure sensitive\nmaterials with operations in Europe, USA, China and Chile. Ritrama is an\nimportant supply partner to CCL Label in a number of its markets.\n\n\nCD Design converts pressure sensitive films and aluminum for leading\nautomotive OEMs in Germany and other European markets. Products include\nregulatory informational labels, branding badges and functional products that\nimprove component durability and design. The Company had sales of\napproximately $26 million in 2007. CCL will pay an initial purchase price of\n$10 million in a combination of cash and assumed debt, and potentially a\nfurther $4.5 million in cash at the end of 2008 subject to EBITDA exceeding\n$2.6 million for this calendar year. As part of the transaction, CD Design\nsigned a new five-year supply agreement to continue deploying Ritrama's\nmaterials and to collaborate in the durable goods market.\n\n\nGeoffrey Martin, President and COO of CCL Industries said, "Consumer\nDurable Goods manufacturers including automotive, mobile communication,\ninformation technology, consumer electronic and domestic appliance OEMs all\nuse the technologies and products we use at CCL Label for branding and\ncommunicating regulatory or instructional information. We believe this is an\ninteresting new customer segment in which to expand the CCL franchise as it\nhas the same hallmarks as our existing business: large customers seeking\nglobally deployed suppliers in a fragmented industry. CD Design is a supplier\nhighly regarded by some of the most demanding customers in the segment and we\nare delighted to have it as a founding business from which we could\npotentially build a new global segment for the company."\n\n\nDonald Lang, Vice Chairman and CEO of CCL Industries added. "This is an\nexciting new development for us in a technology arena our people already\nunderstand. The investment is consistent with our valuation principles for\ntransactions an...