CCL ups focus on plastic tubes, sells closure business (January 25, 2006)
Canadian PlasticsCanadian Plastics
Plastic tube, aluminum tube and pressure-sensitive label-maker, CCL Industries Inc. in Toronto, is selling its disp...
Plastic tube, aluminum tube and pressure-sensitive label-maker, CCL Industries Inc. in Toronto, is selling its dispensing closures business, CCL Dispensing, to the AptarGroup Inc for about $24 million.
CCL Dispensing was based in Libertyville, Ill.
“CCL Dispensing is a small player in the global closures market and I am delighted that a world leading company in the industry is interested in further developing the operation.” Geoffrey Martin, president and chief operating officer of CCL Industries said. “This divestiture will allow us to focus on the decorated plastic tube segment of our plastic packaging business where we have an interesting market opportunity in North America”.
This past year has been one of divestitures and acquisitions for CCL, which have all been part of the company’s strategy to transform itself into a provider of specialty packaging.
Prior to this announcement, the most recent acquisition was announced January 11 when CCL declared its intentions to buy Brazilian label-maker Prodesmaq located in Vinhedo, in the state of Sao Paolo, Brazil for about $64 million.
In September 2005, CCL purchased Inprint Systems in Ashford, England, another manufacturer of specialty label products for the same price of $64 million.
Earlier in 2005, in August, CCL also acquired the remaining assets of its European joint venture, CCL-Pachem, which specializing in decorating solutions for packaging. In the same announcement, CCL stated it bought Merroc Ltd., a label converter located in Cumbernauld, Scotland.
Additionally, CCL unloaded its North American Custom Manufacturing division in May 2005, selling the unit to KCP Income Fund for about $273 million in cash. It was this divestiture that really kickstarted CCL’s transformation into purely a provider of specialty packaging.
During the third quarter (Q3) of 2005, CCL reported sales totaling $281.9 million, up 28 per cent from Q3 2004. Earnings for the first nine months of 2005 were up 20 per cent to $827.7 million compared to the first nine months of 2004 $692.7 million.
CCL Industries employs approximately 4,700 people and operates 47 production facilities in North America, Europe, Latin America and Asia.