Canadian Packaging

Three big deals for CCL Label

By Canadian Packaging staff   

General Coding & Labeling acquisition of label company CCL Design CCL Industries Inc. CCL Label CCL Label Ireland Label Art Digital Ltd. Label Art Ltd. Taisei Kako Co. Ltd. Woelco AG

CCL Industries announces three transactions for CCL Label in Germany, Ireland and Thailand.

TORONTO—CCL Industries Inc., a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers, announced it has concluded two acquisitions for CCL Label plus increased its stake in one of its joint ventures.

CCL acquired Woelco AG, a supplier of durable labeling systems for industrial and automotive customers based near Stuttgart, Germany with subsidiary operations in both the U.S. and China.

The $27-million net cash purchase consideration includes a state-of-the-art manufacturing facility held in a related German property company. 2015 sales were $31-million, with adjusted EBITDA of approximately $4.5-million. Dieter Woelfle, the principal shareholder of Woelco, will be appointed managing director of the European Industrial & Automotive label business under the CCL Design identity, reporting to Peter Fleissner, group vice-president.

In addition, CCL acquired Label Art Ltd. and Label Art Digital Ltd., privately-owned companies with common shareholders, based in Dublin, Ireland.


Label Art is a leading pressure sensitive label producer in Ireland with a focus on healthcare and specialty customers in Ireland and the U.K. 2015 sales were $17-million with adjusted EBITDA of approximately $3-million. The agreed purchase consideration in acquired debt and cash is $15-million, subject to customary closing adjustments. The new business will trade as CCL Label Ireland with immediate effect.

Thirdly, CCL invested $6-million in cash to increase its stake to 75 percent in the tube manufacturing joint venture in Bangkok, Thailand, with Taisei Kako Co. Ltd. of Japan. As CCL now has management control of this operation, 2016’s results will be consolidated with CCL Label’s home and personal care business with a minority interest adjustment. CCL-Taisei’s 2015 sales were nominal with start-up costs.

CCL president and chief executive officer Geoffrey T. Martin comments, “We have known the management of Label Art for many years and welcome them and the deeply experienced Woelco team to CCL. These acquisitions bring strategically important new geography and capability to our healthcare and specialty and CCL Design businesses respectively. Our increased investment in CCL Taisei strengthens our growing commitment to our tube product line globally for Home & Personal Care customers while maintaining an important partnership and market presence in Japan.”

CCL Industries Inc. is a Toronto-based company founded in 1951. CCL Industries is a specialty packaging company that provides packaging products to the home and personal care, food and beverage, healthcare and specialty markets worldwide. It had 2014 revenues of CDN$2.5-billion.

CCL Label is the world’s largest converter of pressure sensitive and extruded film materials for decorative, functional and information labels. The business is CCL’s biggest reportable segment and represents 67 percent of total sales.

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