Specialty label and packaging company CCL Industries has announced the conclusion of a number of business transactions across four continents.
Firstly, the Canada-headquartered company has acquired outright its license holder for Turkey, CCL Dekopak, a leading producer of shrink sleeves for international customers based in Istanbul.
CCL Label plans to use the new business as an entry platform for all product lines in Turkey and will relocate operations to a new plant to facilitate the expansion.
In Japan, CCL Label has acquired the assets of Kadomise, a small producer of pressure sensitive labels based in Shikoku, which will be combined with an existing operation in the country.
In a similar transaction, CCL Label Australia has acquired the Hunter Valley, New South Wales wine label customers of Labelcraft Pty Ltd, which will be integrated into the recently commissioned new facility in Sydney.
Initial combined consideration for these three transactions amounted to US$6 million, and together the businesses are expected to add approximately $12 million in sales and at least $1.5 million EBITDA in their first full year.
Finally, the company has confirmed the closing of its previously announced agreement to acquire Sancoa & TubeDec, privately owned producer of labels and tubes for Home & Personal Care customers in North America.
The new business unit will trade with immediate effect as ‘CCL Label TubeDec’ and will be part of the global CCL Label Home & Personal sector headed by Ben Rubino, president.
Geoffrey T. Martin, president & CEO of CCL Industries Inc., said: “We are pleased to report on further international expansion, adding and developing important geography and continuing to build our fast-growing CCL Label Food & Beverage sector headed by Guenther Birkner, president.”
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