Business
CCL Transformed into Pure Specialty Packaging Company with the Sale of its North American Custom Manufacturing Division
CCL Transformed into Pure Specialty Packaging Company with the Sale of its North American Custom Manufacturing Division.
About this update from Ccl Industries Inc. Class A
[{"type":"text","content":"\n\n\n\n\nStock Symbol: TSX - CCL.A and CCL.NV.B\n\nTORONTO, April 20 /CNW/ - CCL Industries Inc., a world leader in\ndeveloping manufacturing, packaging and labelling solutions for the consumer\nproducts industry, announced today that it has agreed to sell its North\nAmerican CCL Custom Manufacturing Division to KCP Income Fund for\napproximately Cdn $265 million in cash. The proceeds from the sale will fund\nthe continued growth of CCL's higher growth Label and Container businesses\nthrough further acquisitions and technology improvements. The Company may also\nrepay debt, and repurchase stock.\nCCL Custom Manufacturing operates one plant in Canada and three in the\nU.S. These facilities, their customer base and product capabilities will\nprovide a strategic enhancement to KCP's contract manufacturing business,\nwhich is focused on the retail branded household cleaner market. CCL Custom\nManufacturing's 2,200 employees will continue with the business.\nThe North American Custom Manufacturing Division generated sales of \nCdn $604.6 million in 2004 and accounted for Cdn $26.6 million of CCL's\nconsolidated operating income. Once the sale is completed, CCL's annualized\nrevenues will still be in excess of Cdn $1.0 billion.\nMr. Donald Lang, President and CEO stated, \"CCL Industries started as a\nsmall custom manufacturer in Toronto 54 years ago and we have enjoyed a long\nand successful history with CCL Custom Manufacturing. The quality of the\nbusiness and its people has enabled us to derive significant value for the\nbusiness, making this transaction possible.\"\nMr. Lang continued, \"This completes the dramatic transformation of CCL\nthat we started five years ago, with CCL now emerging as a pure specialty\npackaging company focusing on our high growth Label and Container businesses.\nThe divestitures of non-core businesses and the focus on cash flow have\nenabled us to invest in new technology, upgrade facilities and pursue\ninternational growth, creating the largest label converting network in North\nAmerica, Europe and Asia, and the most innovative aluminum container business.\nThe sale of our North American Custom Manufacturing business is consistent\nwith our objective of redeploying our resources to shareholder value-\nmaximizing initiatives and also reduces our risk profile by diversifying our\nexposure to the U.S. cu...