CCL acquires South African operation

CCL Industries has signed a binding agreement to acquire the shares of Ferroprint Western Cape (Pty) Ltd, a wholly owned subsidiary of Ferroprint (Pty) Ltd, based in Durban, South Africa. Ferroprint Western Cape (Pty) Ltd will immediately change its trading name to CCL Label while its former parent company will continue to trade as Ferroprint.

The acquired business has a factory near Cape Town in the wine growing region of Stellenbosch. For the last 12 months estimated revenues were CAN$3.3 million. The debt-cash free purchase price will be CAN$2.7 million representing the approximate value of tangible assets of the acquired company. Final closing is expected to be completed before the end of March.

Geoffrey Martin, president and CEO of CCL Industries, commented: ‘South Africa is a strategic market for our global beverage business which we currently service through a local CCL sales company importing from our European and Australian facilities. This bolt on acquisition will give us a manufacturing presence to build our position in this important beverage market at an attractive valuation for shareholders.’

With headquarters in Toronto, Canada, CCL Industries now employs approximately 5,400 people and operates 55 production facilities globally located to meet the sourcing needs of large international customers.

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