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  • 15 Nov 2018

CCL buys three more businesses to further presence in key markets around the world

CCL buys three more businesses

CCL Industries has reached binding agreements to acquire two privately held label converters and a specialist technology company producing high bond pressure-sensitive tapes.

The first deal is for the acquisition of the assets of Poland’s Unilogo, a supplier of digitally printed, pressure-sensitive and sleeve labels for consumer products customers. Forecasted 2018 sales are approximately $7.4 million CAD ($5.6 million USD) with estimated, adjusted EBITDA of $2.5 million CAD ($1.9 million USD). The agreed purchase consideration in cash and acquired lease obligations is $10.7 million CAD ($8.1 million USD), subject to customary closing adjustments.  The transaction is expected to close in late December 2018.

The second deal is for Vietnamese company Hinsitsu Screen, based in Hanoi, with a second manufacturing operation in Ho Chi Minh City. Hinsitsu is a supplier of durable and tamper evident labels and graphic overlays for the electronics industry in Vietnam. For the trailing 12 months ended June 30, 2018, sales were $11.2 million CAD ($8.5 million USD) with adjusted EBITDA of approximately $2 million CAD ($1.5 million USD). The agreed purchase consideration, net of cash acquired, is $12.4 million CAD ($9.4 million USD) subject to customary adjustments with closing planned for early January 2019.

Olympic Holding and its related subsidiaries is the third organization to be acquired. Based in Venray in the Netherlands, Olympic is a privately held, start-up technology company with a proprietary, patented process to produce high bond, acrylic foam tapes without the use of solvents for applications in the automotive, electronics and construction industries. The agreed purchase consideration in cash and assumed debt is $13.5 million CAD ($10.2 million USD) with closing planned for early January 2019 and subject to customary adjustments.

Geoffrey T. Martin, president CEO at CCL, commented: ‘We are pleased to expand our existing, successful operations in Poland with the addition of Unilogo, which specializes in digital technologies. Hinsitsu brings CCL Design to a strategically important country for global electronics customers, while Olympic adds important capability for high performance adhesive systems. By 2021, we expect Olympic to generate at least $5 million CAD ($3.8 mllion USD) EBITDA through a combination of internal sales to CCL Design and external wins in the broad market. We welcome the employees of all three companies to the CCL family as we continue to execute our growth initiatives.’ 

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