CCL reorganizes Canadian label business

CCL Industries is realigning its Canadian label business with the sale of its label manufacturing plant in Winnipeg, Manitoba to Color Ad Label, a privately held company with interests in flexible packaging and labels. CCL Label Winnipeg focused on local customers in Western Canada with sales of approximately $10 million, and forecasted EBITDA of $1.5 million in the current year. The purchase price was $7 million.

The Company also announced the purchase of Graphiques Apex Inc., a privately held Montreal based manufacturer of instructional leaflets for leading companies in the pharmaceutical industry. Graphiques Apex Inc. has annualized sales of approximately $4 million and EBITDA of approximately $0.9 million. The purchase price for the business was $3.7 million including assumed debt. Both of these transactions were completed on July 2, 2004.

Geoffrey T. Martin, President, CCL Label stated, ‘It is strategically important to build our pharmaceutical business in Canada and provide our important global customers with the same products that we offer to the pharmaceutical industry in the United States and Europe. With the sale of the Winnipeg plant, we will also increase the focus of our Canadian operations on our key markets including personal care, healthcare and specialty products.’

Donald G. Lang commented, ‘This realignment is a continuation of our Label strategy to focus on the higher value added markets and provide superior service and products to our customers around the world.’