Business
CCL Industries Acquires Market Leading Label Company in Brazil
CCL Industries Acquires Market Leading Label Company in Brazil.
About this update from Ccl Industries Inc. Class A
[{"type":"text","content":"\n\n\n\n\nStock Symbol: TSX - CCL.A and CCL.NV.B\n\nTORONTO, Jan. 11 /CNW/ - CCL Industries Inc., a world leader in specialty\npackaging solutions for the consumer products and healthcare industries,\nannounced today that it has acquired the label converting assets of Prodesmaq\nand its subsidiaries. Prodesmaq is Brazil's largest supplier of pressure-\nsensitive labels for many of the same leading global companies in the home and\npersonal care, healthcare and premium food and beverage categories as CCL\nLabel. Located in Vinhedo in the state of Sao Paulo, Prodesmaq operates two\nstate-of-the-art plants and is regarded as the market leader in this sector in\nthe Mercusor region of Latin America.\nProdesmaq had revenues of C$37 million in calendar year 2005 and an\nadjusted EBITDA of approximately C$16 million. The cash purchase price is\napproximately C$64 million on a debt-free basis.\nDonald Lang, Vice Chairman and CEO of CCL Industries commented, \"This\nacquisition fits our strategy to redeploy cash into value enhancing\ntransactions that are immediately accretive. In addition, Prodesmaq has many\ncommon customers with CCL Label, and alongside our existing rapidly growing\nbusiness in Mexico, positions us as the leading player in all of Latin\nAmerica\".\nGeoffrey Martin, President and COO of CCL Industries said, \"We have known\nthe Jocionis family for a number of years and have watched and admired them as\nthey built Prodesmaq into not only the leading player in Brazil, but one of\nthe best managed label businesses in the world. I am very pleased that Luis\nCarlos Jocionis and Nilson Barrantes have agreed to remain with the company to\nhelp us bring Brazil and the Mercusor region into the CCL Label supply chain\nnetwork for our large global customers\".\nCCL Industries Inc. provides state-of-the-art specialty packaging\nsolutions to some of the world's largest producers of consumer brands in\npersonal care, cosmetic, healthcare, household and specialty food and beverage\nproducts. CCL is the world's largest supplier of innovative and secure\nlabelling solutions to leading global companies in the consumer product and\nhealthcare sectors and supplies aluminium containers and plastic tubes and\nclosures for major consumer brands of personal care, household products and\nspecialty beverages. With headquarters in Toronto, Canad...