Last July CCL announced plans to merge its European and Asian labelling operations with those of Steinbeis to form a joint venture, but subsequent negotiations concluded an outright purchase of the German business would "better enable synergies to be developed on a global basis".
Steinbeis, which is headquartered in Holzkirchen, supplies battery labels to customers worldwide and decorative labels for cosmetics and food beverages to many blue-chip clients. Peter Gronfeld, marketing and sales manager for CCL's food business, adds: "The acquisition provides excellent synergies in the cosmetics and food and beverage areas particularly, while Steinbeis's expertise in battery labelling – it owns numerous patents and supplies around 70% of the world's total pressure-sensitive battery label requirements – adds another major string to our bow."
Alongside its Holzkirchen factory, Steinbeis operates another German label plant, an in-mould facility in France, and manufacturing sites in China and the US.
CCL Industries president and ceo Donald D Lang said of the purchase: "We are very pleased to continue building our global position in the highly fragmented label industry. This transaction accelerates CCL Label's strategy of servicing our customers on a global basis and transforms our current business into the largest and fast-growing label network in Europe and China"
Lang also revealed that the labelling business is to invest Cdn$18.5m (£8.05m) to increase its capabilities in Eastern Europe and China. Two new CCL Label greenfield labelling plants being built at Poznan in Poland and Guangzhou, China, are due to come on stream later this year.
This Steinbeis acquisition, coupled with the new investments in Eastern Europe and China, will give CCL Label more than 30 sites worldwide and total revenues of around Cdn$650m."
