CCL adds to label division

Sancoa and TubeDec operate from three plants located in New Jersey and one in Ohio. Their combined sales in 2013 were 82.5 USD million with an adjusted EBITDA of approximately 10.1 million USD.

The acquisition will add to CCL Label's global Home & Personal Care business unit headed.

The agreed purchase price is 71 million USD, including the settlement of financial debt. Closing is scheduled during the first quarter of 2014 subject to customary completion conditions.

Geoffrey T. Martin, president and chief executive officer of CCL Industries, said: ‘Joe Sanski, the principal shareholder of Sancoa and TubeDec, built one of the most espected companies in the world label industry.

‘Over three decades he pioneered numerous, innovative label and tube decorating technologies that are globally recognized by customers, suppliers and peers.

‘We are very pleased Joe chose us as a legacy home for the business that he founded and welcome both him and his management team on their joining CCL; making the integration process seamless for our combined organization and customers.’

CCL Industries has recently increased its stake in its Chilean wine label operation Acrus-CCL to 62.5 percent, and alluded to expanding into new territories in the Andean region.

Of the Sancoa and Tubedec deal, Martin added: ‘We expect to unlock many financial and operational synergies which we will announce in more detail at the closing of the transaction later this quarter.’