$71 Million in Consolidation: CCL Industries Buying Four U.S. Labeling and Packaging Plants
TORONTO—January 21, 2014—CCL Industries has signed a binding agreement to acquire Sancoa and TubeDec, privately owned companies with common shareholders, for U.S. $71 million, including the settlement of financial debt. The companies supply labels and plastic tubes to home and personal care customers in North America and have three plants in New Jersey and one in Ohio. Subject to customary completion conditions, the closing is scheduled during the first quarter of 2014.
The new acquisition will trade as part of CCL Label’s global home and personal care business unit headed by Ben Rubino, president. Sancoa and TubeDec’s combined sales in 2013 were U.S. $82.5 million with an adjusted EBITDA of approximately U.S. $10.1 million.
Joe Sanski, the principal shareholder of Sancoa and TubeDec, built one of the most respected companies in the world label industry, said Geoffrey Martin, president and CEO of CCL Industries. “Over three decades he pioneered numerous, innovative label and tube decorating technologies that are globally recognized by customers, suppliers and peers. We are very pleased Joe chose us as a legacy home for the business that he founded and welcome both him and his management team on their joining CCL.”
Martin concluded, “We expect to unlock many financial and operational synergies, which we will announce in more detail at the closing of the transaction later this quarter.”
About CCL Industries
CCL Industries employs approximately 10,000 people and operates 89 production facilities in 25 countries on five continents with corporate offices in Toronto and Framingham, MA. CCL Label is the world’s largest converter of pressure sensitive and film materials for a wide range of decorative, instructional and functional applications for large global customers in the consumer packaging, healthcare, automotive and consumer durables markets. Extruded plastic tubes, folded instructional leaflets, precision printed and die cut metal components with LED displays and other complementary products and services are sold in parallel to specific end use markets. Avery is the world’s largest supplier of labels, specialty converted media and software solutions to enable short run digital printing in businesses and homes alongside complementary office products sold through distributors and mass market retailers. CCL Container is a leading producer of impact extruded aluminum aerosol cans and bottles for consumer packaged goods customers in the United States, Canada and Mexico.
Source: CCL Industries.