CCL Industries buys European label converter

Toronto-based CCL Industries, a manufacturer of plastic packaging and labeling systems, has signed an agreement to purchase the shares of Avery Dennison Corp.’s European label converting business. Total cost of transaction is approximately CAD$85 million. The figure includes anticipated restructuring and other costs. Closing is expected in the third quarter of 2003. Under terms of the transaction, CCL Label, a division of CCL Industries, will supply Avery Dennison pressure sensitive materials used in the label converting process.
Avery Dennison’s Europe-based label converting business focuses on healthcare and other specialty markets. It operates from facilities in Denmark and France and recorded sales of $82 million in 2002.
President of CCL Label Geoffrey Martin said: "This acquisition provides us with the opportunity to expand our present European supply base to the healthcare industry and to build significantly on our position globally with our customer base in this important sector.