CCL Industries to Acquire Spirits Label Co. in Scotland
TORONTO—November 20, 2012—CCL Industries (TSX:CCL.A)(TSX:CCL.B), a world leader in specialty packaging solutions for the consumer products and healthcare industries, announced today that it has signed a heads of agreement to acquire through the purchase of shares John Watson & Co. Ltd., a privately owned label converter located in Glasgow, Scotland with estimated sales of approximately U.K. pounds 12 million in the current year. The planned acquisition produces labels for leading distillers of Scotch whisky and other spirits and will complement the global network of CCL Label Wine & Spirits operations in Australia, Asia, Latin America, Russia, South Africa, the United Kingdom and the United States. The transaction is subject to contract, with terms based on the financial performance of John Watson & Co. for calendar year 2013. Specific details will be disclosed following completion of the planned transaction in early 2014.
In the interim period the two companies will cooperate to serve common customers and leverage combined supplier relationships. This coordination will be led by Guenther Birkner, president, Food & Beverage Worldwide together with the management teams of John Watson & Co. and CCL Label Wine & Spirits business units.
John Watson, whose family have owned the shares of the company since inception, will remain associated with the business in an advisory capacity. Robert McLachlan and Allan McDonnell will enter into continuing employment agreements as joint managing directors. The acquired company will, on completion of the transaction, change its trading name to CCL Label and become a part of the global Wine & Spirits network.
"The Wine & Spirits sector continues to be attractive for us as we have built our business by a series of acquisitions, joint ventures and greenfield investments around the world," said Geoffrey Martin, president and CEO of CCL Industries. "Guenther and his key people have held John Watson & Co. in high regard for a long time and believe the great team that John assembled will allow us to get closer to important global customers located in Scotland. We also plan to support the planned acquisition with further investment in the operation in Glasgow."
John Watson, chairman of John Watson & Co., also commented "We are delighted to have concluded heads of agreement with CCL and look forward to the future with confidence and enthusiasm. We believe CCL will be a very good home for John Watson & Co. and that it will take the business to the next level. This has been a personal crusade in developing Watson's over 46 years and I would like to thank all my dedicated directors, staff and others associated with this business for their unswerving loyalty and support."
About CCL Industries
With headquarters in Toronto, CCL Industries now employs approximately 6,600 people in 74 plants globally located to meet the sourcing needs of large international customers. CCL Label is the world's largest converter of pressure sensitive and film materials for label applications and sells to leading global customers in the consumer packaging, healthcare, automotive and consumer durable segments. CCL Container and CCL Tube are leading producers of aluminum aerosol cans, bottles and extruded plastic tubes for the consumer products industry in North America.