Business
CCL Industries Signs Binding Agreement to Acquire a Leading Australian Wine Label Company
Stock Symbol: TSX - CCL.A and CCL.B TORONTO, March 17 /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, March 17 /CNW/ - CCL Industries Inc., a world leader in\nspecialty packaging solutions for the consumer products and healthcare\nindustries, announced today that it has signed a binding agreement to acquire\nClear Image Labels Pty Ltd., a privately owned label company based in\nAustralia. Clear Image supplies pressure sensitive labels to the Australian\nwine industry with plants in Sydney, New South Wales and the Barossa Valley in\nSouth Australia where 60% of the country's wine is produced. Customers of the\nbusiness are entirely based in the wine industry. The company also exports\nlabels to wine producers in the United States.\n\n\nCCL Industries will pay $34 million in a combination of cash, restricted\nstock and absorbed debt to acquire the business and a freehold property in the\nBarossa Valley. In its current trading year, which ends June 30, 2008, Clear\nImage is expected to generate sales of approximately $21 million and adjusted\nEBITDA of approximately $5.5 million. Closing is expected to occur in the next\nmonth after certain administrative procedures are completed.\n\n\nGeoffrey Martin, President and COO of CCL Industries said, "We have been\nlooking closely at the situation in the wine industry for the last couple of\nyears and are very pleased to have found a business with a strong market\nposition and a highly capable management team headed by Scott Springett, Clear\nImage's Managing Director and major shareholder. I am pleased to say that\nScott will be remaining with the business and helping us grow the position he\nand his team have established into a new global segment for CCL Label. They\nwill also act as a vehicle to sell specialty CCL Label products in Australia."\n\n\nDonald Lang, Vice Chairman and CEO of CCL Industries added, "This is an\ninteresting transaction for CCL as it simultaneously expands our geographic\nfootprint and also takes us into a new segment of the beverage industry which\nhas exhibited above average growth rates."\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 to\nleadi...