Business News
CCL Industries to acquire wine label plant in South Africa
Thursday 05. March 2009 - CCL Industries Inc., a world leader in label solutions for the consumer packaging and healthcare markets, announced today that it 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 focused factory near Cape Town in the wine growing region of Stellenbosch, South Africa. For the last 12 months estimated revenues were $3.3 million. The debt-cash free purchase price will be $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. CCL Label is the worlds largest converter of pressure sensitive and film materials for label applications and sells to leading global customers in the consumer packaging, healthcare, automotive and consumer durable markets. CCL Container and CCL Tube are leading producers of aluminum aerosol cans, bottles and extruded plastic tubes for consumer packaged goods customers in the United States, Canada and Mexico.