Toronto-based specialty label and packaging maker CCL Industries is getting into the in-house extrusion business with an agreement to acquire the assets of Advanced Packaging Films GmbH, of Schkopau, Germany, for approximately $9 million in cash and assumed debt.
The new business unit will trade as Advanced Performance Films and, according to a CCL press releases, will be an integral part of the CCL Label global food and beverage business.
The transaction is expected to close on Oct. 31.
"This new capability allows us to design proprietary, specialty films for new sleeve and pressure-sensitive label applications while improving our supply chain performance for part of today's demand,” said CCL division president Guenther Birkner. “It is an important strategic step as we seek to accelerate growth with global brand owners in the premium segment of this market.”
Geoffrey T. Martin, the president and CEO of CCL Industries, added that, over time, “we expect to develop more capabilities across the company in the materials science field as we seek to innovate new ideas for customers. Bolt on acquisitions like this could become an important part of that strategy."
CCL Industries employs approximately 9,600 people and operates 87 production facilities in 25 countries on five continents.