CCL Industries to sell interest in European JV
Canadian PlasticsCanadian Plastics
Toronto-based specialty packaging company CCL Industries Inc. has signed an agreement to sell its 40 per cent inter...
Toronto-based specialty packaging company CCL Industries Inc. has signed an agreement to sell its 40 per cent interest in its European joint venture, ColepCCL, Embalagens e Enchimentos S.A. to its Portugal-based majority partner, RAR – Sociedade de Controle (Holding), S.A.
The 2004 merger between CCL and COLEP created the largest European contract manufacturer of personal care, household and pharmaceutical products.
In the fiscal year of 2006, CCL’s proportional share of ColepCCLs sales was $182.7 million, and the joint venture contributed $18 million of earnings before interest and taxes to the company’s financial results before interest and taxes.
“ColepCCL’s management team has met all of our expectations by achieving the synergies that were identified at the time of the merger and growing the business,” said CCL Vice Chairman and CEO Donald Lang. “ColepCCL has many opportunities for both internal growth and acquisitions; however, upon evaluating our own growth opportunities, we have decided to focus our investment dollars in the businesses that we control.”
CCL will receive approximately $140 million in cash for its interest in the joint venture, which will nearly double the company’s return on its original investment. The transaction is expected to close by the end of November.