CCL buys Brazilian label-maker (January 11, 2006)
Canadian PlasticsCanadian Plastics
Toronto-based CCL Industries Inc. has acquired Brazil's largest supplier of pressure-sensitive labels, Prodesmaq, b...
Toronto-based CCL Industries Inc. has acquired Brazil’s largest supplier of pressure-sensitive labels, Prodesmaq, based in Sao Paulo, Brazil, for about $64 million.
“This acquisition fits our strategy to redeploy cash into value enhancing transactions that are immediately accretive. In addition, Prodesmaq has many common customers with CCL Label, and alongside our existing rapidly growing business in Mexico, positions us as the leading player in all of Latin America,” said Donald Lang, vice chairman and CEO of CCL Industries, in a statement.
Additionally, Prodesmaq had revenues of C$37 million in calendar year 2005 and an adjusted EBITDA of approximately C$16 million, and operates two facilities.
CCL provides packaging and labeling solutions to producers of consumer brands in personal care, cosmetic, healthcare, household and specialty food and beverage products. It also supplies aluminium containers, and plastic tubes and closures for consumer brands of personal care, household products and specialty beverages.
The firm has approximately 4,700 people and operates 47 production facilities in North America, Europe, Latin America and Asia.