Business
CCL Industries to acquire Eltex GmbH and expand its position in the durable label business
Stock Symbol: TSX - CCL.A and CCL.B TORONTO, Dec. 18 /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, Dec. 18 /CNW/ - CCL Industries Inc., a world leader in labelling\nsolutions for the consumer packaging and healthcare markets, announced today\nthat it has signed a binding agreement to acquire Eltex GmbH based in\nSolingen, Germany. The company supplies a patented pressure sensitive label\nsolution which replaces solid aluminum riveted rating plates widely used in\nthe automotive, consumer durable and information technology hardware markets.\n\n\nFor the calendar year of 2008 estimated revenues for Eltex are $9.7\nmillion with an anticipated EBITDA of approximately $1.5 million. The\ndebt-cash free purchase price on closing will be approximately $5.4 million.\nCompletion of the transaction will occur on December 31st 2008.\n\n\nGeoffrey Martin, President and CEO of CCL Industries commented, "Eltex\nwill be merged with CD-Design, the business we acquired earlier this year, now\nrenamed CCL Design, which markets highly complimentary products to the same\nindustry sector. Coincidentally, CCL Design and Eltex are located in the same\nindustrial park in Germany. We will continue to use the Eltex brand name for\nthe patented product line the business produces and plan to make it available\non a global basis. We are delighted that the management of the business will\nremain with us and become part of CCL Design." Mr. Martin added, "This\nacquisition demonstrates our ability to continue finding situations in the\nlabel sector that meet both our strategic and financial criteria to enhance\nshareholder value."\n\n\nWith headquarters in Toronto, Canada, CCL Industries now employs\napproximately 5,300 people and operates 54 production facilities globally\nlocated to meet the sourcing needs of large international customers. CCL Label\nis the world's largest converter of pressure sensitive and film materials for\nlabel applications and sells to leading global customers in the consumer\npackaging, healthcare, automotive and consumer durable markets. CCL Container\nand CCL Tube are leading producers of aluminum aerosol cans, bottles and\nextruded plastic tubes for consumer packaged goods customers in the United\nStates, Canada and Mexico.\n\n\nAny forward-looking statements contained in this press release, including\nstatements relating to the outlook of CCL Industri...