CCL continues global growth

The company has acquired outright its license holder for Turkey, CCL Dekopak, a producer of shrink-sleeves for international customers based in Istanbul. CCL Label plans to use the new business as an entry platform for all product lines in Turkey and will relocate operations to a new plant to facilitate the expansion.

In Japan CCL Label has acquired the assets of Kadomise, a small producer of pressure-sensitive labels based in Shikoku, which will be combined with an existing operation in the country.

In a similar transaction, CCL Label Australia has acquired the Hunter Valley, New South Wales wine label customers of Labelcraft Pty, which will be integrated into the recently commissioned new facility in Sydney.

Initial combined consideration for these three transactions amounted to six million USD and together the businesses are expected to add approximately 12 million USD in sales and at least 1.5 million USD EBITDA in their first full year.

The company has also confirmed the closing of its previously announced agreement to acquire Sancoa and TubeDec, privately owned producers of labels and tubes for home and personal care customers in North America. The new business unit will trade with immediate effect as CCL Label TubeDec and will be part of the global CCL Label Home & Personal sector headed by Ben Rubino, President.

Geoffrey T. Martin, president and chief executive officer of CCL Industries, said: 'We are pleased to report on further international expansion, adding and developing important geography and continuing to build our fast growing CCL Label Food & Beverage sector headed by Guenther Birkner, president. In North America, we expect to find significant cost, innovation and procurement synergies at Sancoa and TubeDec through its combination with existing CCL Label Home & Personal Care operations.

'For 2016, we plan to improve EBITDA from the acquired revenue stream by approximately five million USD. Over the intervening period the company expects to incur approximately four million USD of integration costs including transaction expenses from the acquisition process.’