CCL unloads North American manufacturing division (June 02, 2005)
CCL Industries Inc. (Toronto, ON) has completed its metamorphosis into a specialty packaging firm after selling its...
CCL Industries Inc. (Toronto, ON) has completed its metamorphosis into a specialty packaging firm after selling its North American manufacturing division to KCP Income Fund for $273 million in cash, CCL announced Thursday.
KCP Income Fund is a retailer of bleach, laundry detergent and household cleaning products.
CCL’s CEO and Vice-Chairman, Donald Lang, said the sale of the manufacturing division was the final step in CCL’s transformation, which started five years ago.
Profits from the sale will go towards expanding CCL’s Label and Container divisions through acquisitions and technological improvements, Lang said. In the first quarter of 2005, revenues from CCL’s Label business grew by 18%, while its Container business grew by 55%, he noted.
CCL uses both plastic and aluminum to make packaging for brand name products in the personal care, cosmetics and pharmaceutical industries, as well as the household, specialty food and beverage sectors.
In 2004, CCL’s manufacturing division earned $604.6 million and accounted for $26.6 of CCL’s operating income.
But even without its manufacturing division, CCL’s earnings are expected to exceed $1 billion in 2005, the company said. This includes revenue from Steinbeis Packaging, a company CCL acquired in January.