Business
CCL Industries Completes Sale of its 40% Interest in European Joint Venture
Stock Symbol: TSX - CCL.A and CCL.B TORONTO, Nov. 20 /CNW/ - CCL Industries Inc., a world leader ...
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, Nov. 20 /CNW/ - CCL Industries Inc., a world leader in specialty\npackaging and labelling solutions for the consumer products and healthcare\nindustries, announced today it has completed the sale of its 40% interest in\nits European joint venture, ColepCCL Portugal - Embalagens e Enchimentos S.A.\nto its majority partner, RAR - Sociedade de Controle (Holding), S.A., based in\nPortugal, which was announced October 4, 2007.\n\n\nCCL will receive a total of $145 million for its interest in the joint\nventure. Fifty percent of the sale price was received today, with the\nremaining 50%, supported by a bank guarantee with a major European financial\ninstitution, to be paid at the end of February 2008. Including dividends\nreceived, CCL has almost doubled its return on its original investment made\nthree and a half years ago. ColepCCL has retained all of the net debt in the\nbusiness, reducing CCL's debt by approximately $26 million.\n\n\nIn 2006, CCL's proportional share of ColepCCL's sales was $182.7 million\nand the joint venture contributed $18.0 million of earnings before interest\nand taxes and $25.5 million in EBITDA to CCL's financial results.\n\n\nDonald G. Lang, Vice Chairman and Chief Executive Officer of CCL\nIndustries Inc. said, "Over the last five years, CCL has consistently\ndelivered improved results with focused strategic capital investments in our\ncore businesses and bolt on acquisitions at CCL Label, which have met our\nfinancial hurdles. The proceeds from this transaction provide us with more\nflexibility to accelerate building the great franchises in our portfolio,\nwhich now make CCL a pure global specialty packaging company."\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 approximately 5,000\npeople and operates 49 production facilities in North America, Europe, Latin\nAmerica and Asia.\n\n\nStatements contained in this Press Release, other than statements of\nhistorical facts, are forward-looking statements subject to a number of\nuncertainties that could cause actual events or results to differ material...