CCL Industries creates new business platform
CCL Industries Inc., a Toronto-based specialty packaging and labeling solutions company for the consumer products a...
February 11, 2008 by Canadian Plastics
CCL Industries Inc., a Toronto-based specialty packaging and labeling solutions company for the consumer products and healthcare industries, has announced its acquisition of Solingen, Germany-based CD Design GmbH. CD Design’s shareholders also control Ritrama S.p.A., an Italian manufacturer of pressure sensitive materials.
The acquisition will create a new business platform for CCL: CD Design converts plastic films and aluminum for leading automotive OEMs in Germany and other European markets. The company had sales of approximately $26 million in 2007.
CCL said it would pay an initial purchase price of $10 million in a combination of cash and assumed debt, with an additional potential $4.5 million in cash at the end of 2008. CD Design has also signed a five-year supply agreement as part of the transaction to continue deploying Ritrama’s materials and to collaborate in the durable goods market.
CCL executives said consumer durable goods manufacturers such as automotive, mobile communication, information technology, consumer electronic and domestic appliance OEMs use the technologies and products the company already uses at CCL Label.
“We believe this is an interesting new segment in which to expand the CCL franchise as it has the same hallmarks as our existing business: large customers seeking globally deployed suppliers in a fragmented industry,” said CCL Industries president and COO Geoffrey Martin. “CD Design is a supplier highly regarded by some of the most demanding customers in the segment and we are delighted to have it as a founding business from which we could potentially build a new global segment for the company.”