Business
CCL Industries Divests Advanced Barrier System (ABS) 'Bag-on-Valve' Business
Stock Symbol: TSX - CCL.A and CCL.B TORONTO, April 7 /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, April 7 /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 divest the assets of\nits ABS 'Bag-on-Valve' business to AptarGroup, Inc. The business is a product\nline of CCL Container, sold in conjunction with aluminum aerosol containers\nfor applications requiring separation between the propellant and the contents.\nCCL Container will retain the aluminum aerosol can business sold to customers\nusing the 'Bag-on-Valve' system and AptarGroup will separately market these\nspecialized dispensing systems to the customers.\n\n\nThe ABS product line, located in Penetanguishene, Ontario, had revenues\nof approximately $9 million in the calendar year 2007 with an estimated\nbreak-even contribution to CCL Container's reported Operating Income. The\npurchase price for the business is approximately $9.4 million, which will be\npaid in cash. There will be a short-term transition period during which the\nbusiness will be relocated to an AptarGroup subsidiary in Illinois. The\nCompany anticipates a small gain on disposal after incurring restructuring\ncosts associated with the transaction. The CCL Container facility in\nPenetanguishene, Ontario will continue to produce high quality aluminum\ncontainers for the food and beverage and personal care markets in conjunction\nwith existing operations in the U.S. and Mexico. CCL Container's total sales\nfor 2007 were $182 million.\n\n\nDonald Lang, Vice Chairman and CEO of CCL Industries commented, "CCL\nContainer can now focus on its core business as North America's leading\nproducer of impact extruded aluminum aerosols and bottles."\n\n\nGeoffrey Martin, President and COO of CCL Industries said, "We are\npleased to have been able to reach an agreement with AptarGroup that allows\neach company to focus on their relative strengths in the market for aerosols\nrequiring these specialized delivery systems."\n\n\nWith headquarters in Toronto, Canada, CCL Industries now employs\napproximately 5,500 people and operates 54 production facilities in North\nAmerica, Europe, Latin America and Asia Pacific. CCL Label is the world's\nlargest converter of pressure sensitive and film materials and sells ...