CCL Industries agres to acquire Sancoa and Tubedec.
January 21, 2014
by Canadian Packaging Staff
TORONTO—CCL Industries Inc., a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers announced today that it has signed a binding agreement to acquire “Sancoa” and “TubeDec”, privately-owned companies with common shareholders supplying labels and plastic tubes to Home & Personal Care customers in North America from three plants located in New Jersey and one in Ohio. The agreed purchase price is US$71 million including the settlement of financial debt. Closing is scheduled during the first quarter of 2014 subject to customary completion conditions.
The new acquisition will trade as part of CCL Label’s global Home & Personal Care business unit headed by Ben Rubino, President. Sancoa & TubeDec’s combined sales in 2013 were US$82.5 million with an adjusted EBITDA of approximately US$10.1 million.
Geoffrey T. Martin, President & CEO of CCL Industries commented, “Joe Sanski, the principal shareholder of Sancoa & TubeDec, built one of the most respected companies in the world label industry. Over three decades he pioneered numerous, innovative label and tube decorating technologies that are globally recognized by customers, suppliers and peers. We are very pleased Joe chose us as a legacy home for the business that he founded and welcome both him and his management team on their joining CCL; making the integration process seamless for our combined organization and customers.”
Mr. Martin concluded, “We expect to unlock many financial and operational synergies which we will announce in more detail at the closing of the transaction later this quarter.”
CCL Industries employs approximately 10,000 people and operates 89 production facilities in 25 countries on 5 continents with corporate offices in Toronto and Framingham, Massachusetts. CCL Label is the world’s largest converter of pressure sensitive and film materials for a wide range of decorative, instructional and functional applications for large global customers in the consumer packaging, healthcare, automotive and consumer durables markets. Extruded plastic tubes, folded instructional leaflets, precision printed & die cut metal components with LED displays and other complementary products and services are sold in parallel to specific end use markets. Avery is the world’s largest supplier of labels, specialty converted media and software solutions to enable short run digital printing in businesses and homes alongside complementary office products sold through distributors and mass market retailers. CCL Container is a leading producer of impact extruded aluminum aerosol cans and bottles for consumer packaged goods customers in the United States, Canada and Mexico.
For company information, visit www.cclind.com.