Chesapeake sells French Wine and Spirits label business

Chesapeake Corporation has completed the sale of the assets of its French wine and spirits label business, Bourgeot Etiqso Lesbats, to the Autajon Group.  The sale price was approximately 1.16 million euro.
Bourgeot Etiqso Lesbats, based in Bordeaux, France, was acquired by Field Group plc, now a Chesapeake subsidiary, in 1995, as an entry for Field Group into the market for labels for the French wine industry. 
In a statement, Chesapeake said, ‘In recent years, challenging business trends in the French wine industry have had a negative impact on the profitability of the business.  The sale of the business to the Autajon Group provides an opportunity for the business and its employees as part of Autajon's established and growing French wine label network and will allow Chesapeake to focus its management attention and capital on its core businesses and markets.’
In the second quarter of 2005, the company expects to recognize a pre-tax, non-cash loss, currently estimated at approximately $3.5 million, on the sale. The company also expects the transaction to be accretive to earnings starting in the third quarter of 2005.
Chesapeake Corporation is one of Europe's premier suppliers of folding cartons, leaflets and labels, as well as plastic packaging for niche markets.  Chesapeake has more than 50 locations in Europe, North America, Africa and Asia and employs approximately 6,000 people worldwide.