Business
CCL Industries agrees to acquire ITW sleeve label business
CCL Industries agrees to acquire ITW sleeve label business.
About this update from Ccl Industries Inc. Class A
[{"type":"text","content":"\n\n\n\nNews Release Stock Symbol: TSX - CCL.A and CCL.B\n\n\nTORONTO, Jan. 10 /CNW/ - CCL Industries Inc., a world leader in specialty\npackaging solutions for the consumer products and healthcare industries,\nannounced today that it has signed a binding agreement to acquire the sleeve\nlabel business of Illinois Tool Works Inc. (ITW) on a debt free basis for\napproximately C$105 million in cash.\n\n\nITW produces shrink-film sleeve labels for the European and North\nAmerican markets in two factories at its Decorative Sleeves division in the\nUnited Kingdom. In addition, the ITW Auto-Sleeve division has facilities in\nAustria and Brazil that produce primarily stretch-film sleeve labels for\nmarkets in Europe and the Americas, respectively. The Brazilian operations\ninclude a sales, service and distribution arm that handles the North American\nmarket from Twinsburg, Ohio. Together, these businesses had sales of\napproximately C$87 million in 2006.\n\n\nThe parties expect the transaction to close at the end of January 2007\nfollowing receipt of regulatory approvals.\n\n\nDonald Lang, Vice Chairman and CEO of CCL Industries commented, \"This is\nanother great example of our increasing ability to find bolt on acquisitions\nthat are both an excellent fit for our globally organized label business and\nimmediately accretive to shareholders.\"\n\n\nGeoffrey Martin, President and COO of CCL Industries added, \"Shrink and\nstretch sleeve labels offer a flexible full body form of decoration which is\nparticularly effective for the highly shaped containers used in the premium\nfood and beverage and the home and personal care segments of the market. Our\ntwo businesses target many common customers in the consumer products market.\nThe combination of CCL Label's sleeve product lines with those of ITW will\nmake us one of the global leaders in a fast growing segment of the label\nindustry.\"\n\n\nCCL manufactures pressure-sensitive, shrink sleeve and in-mould labels,\naluminum containers and plastic tubes for leading global companies in the home\nand personal care, healthcare and specialty food and beverage sectors. With\nheadquarters in Toronto, Canada, CCL Industries employs more than 4,600 people\nand operates 45 production facilities in North America, Europe, Latin America\nand Asia. CCL's joint venture, ColepCCL operates five plants in E...