Business News
CCL INDUSTRIES TO ACQUIRE ELTEX GMBH AND EXPAND ITS POSITION IN THE DURABLE LABEL BUSINESS
Monday 29. December 2008 - CCL Industries Inc., a world leader in labelling solutions for the consumer packaging and healthcare markets, announced today that it has signed a binding agreement to acquire Eltex GmbH based in Solingen, Germany.
The company supplies a patented pressure sensitive label solution which replaces solid aluminum riveted rating plates widely used in the automotive, consumer durable and information technology hardware markets.
For the calendar year of 2008 estimated revenues for Eltex are $9.7 million with an anticipated EBITDA of approximately $1.5 million. The debt-cash free purchase price on closing will be approximately $5.4 million. Completion of the transaction will occur on December 31st 2008.
Geoffrey Martin, President and CEO of CCL Industries commented, “Eltex will be merged with CD-Design, the business we acquired earlier this year, now renamed CCL Design, which markets highly complimentary products to the same industry sector. Coincidentally, CCL Design and Eltex are located in the same industrial park in Germany. We will continue to use the Eltex brand name for the patented product line the business produces and plan to make it available on a global basis. We are delighted that the management of the business will remain with us and become part of CCL Design.” Mr. Martin added, “This acquisition demonstrates our ability to continue finding situations in the label sector that meet both our strategic and financial criteria to enhance shareholder value.”
With headquarters in Toronto, Canada, CCL Industries now employs approximately 5,300 people and operates 54 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.