CCL buying banknote maker Innovia for $1.13 billion
The acquisition of UK-based Innovia is expected to make Toronto's CCL the world leader in the fast-growing polymer banknote market.
In a bid to become top dog in the polymer banknote industry, Toronto-based specialty label supplier CCL Industries Inc. will pay $1.13 billion to buy its British rival Innovia.
Innovia, headquartered in Wigton in the U.K., is a global producer of specialty, high performance, multi-layer, surface engineered BOPP films for label, packaging, and security applications. The business has film extrusion, coating, and metallizing facilities across the U.K., Belgium, and Australia as well as high security, specialized polymer banknote operations in the U.K., Australia, and Mexico. The firm, which has 1,200 employees and sales offices in 16 countries, makes polymer banknotes similar to the ones used in Canada and many other countries.
The deal, which is expected to close by the end of the first quarter of 2017, is being described as one that will make CCL the world leader in the polymer banknote market. Such banknotes last longer and are more secure than conventional paper bills.
“This transaction is another transformative acquisition for CCL, propelling the company to world leadership in the disruptive, fast growing polymer banknote market,” CCL president Geoffrey Martin said in a statement. “We expect to find significant operational, customer and product innovation growth opportunities between Innovia and our end use facing businesses at CCL.”