Canada’s CCL Industries to buy UK’s Innovia for $1.13 billion
By Canadian Packaging staffGeneral Plastic CCL Industries Eukerdruck Innovia Group plastic film manufacturing company acquisition
Acquisition expected to make CCL the leader in polymer banknote production.
CCL Industries, a Canadian-based specialty packaging solutions provider headquartered in Toronto, has agreed to purchase UK’s Innovia Group for C$1.13 billion.
Innovia manufactures high-performance BOPP (bi-axially oriented polypropylene) films for label, packaging and security applications, and has film extrusion, coating and metallizing plants in the U.K., Australia and Belgium, as well as high-security, specialised polymer banknote operations in the Mexico, and the U.K., and Australia.
The company also produces polymer banknotes, such as what Canada has been using for the past five years, widely considered to be a highly secure type of banknote..
CCL is buying Innovia debt-free from a consortium of U.K.-based private equity investors managed by the Smithfield Group. The deal is expected to be formalized by the close of Q1 2017.
CCL Industries president and chief executive officer Geoffrey Martin says, “This transaction is another transformative acquisition for CCL, propelling the Company to world leadership in the disruptive, fast-growing polymer banknote market while strengthening our depth in the materials science arena with proprietary BOPP films technology for the label, packaging and security sectors.”
He continues: “We expect to find significant operational, customer and product innovation growth opportunities between Innovia and our end-use facing businesses at CCL Label, CCL Design, Checkpoint and Avery.”
Innovia has over 1,200 employees globally.
CCL Industries calls itself the largest label company in the world, providing solutions to the home & personal care, food & beverage, healthcare & specialty, electronics & consumer durables, and retail & apparel global market segments.
CCL Industries has 19,000 employees and 150 manufacturing facilities in North America, Latin America, Europe, Asia, Australia and Africa.
In May of 2016, and still in the works, CCL Industries indicated it planned to acquire of Germany, a business that manufactures folded leaflets, specialty booklets and pressure sensitive labels for pharmaceutical companies across Europe.
For more information on CCL Industries, visit www.cclind.com.