01.22.16
CCL Industries Inc. announced that 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 with subsidiary operations in both the US and China. The $27 million net cash purchase consideration includes a state-of-the-art manufacturing facility held in a related German property company. The company’s 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 VP.
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 UK. Its 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.
CCL also invested $6 million in cash to increase its stake to 75% in the tube manufacturing JV 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 & Personal Care business with a minority interest adjustment. CCL-Taisei’s 2015 sales were nominal with start-up costs.
“We have known the management of Label Art for many years and welcome them and the deeply experienced Woelco team to CCL,” said Geoffrey T. Martin, president and CEO of CCL. “These acquisitions bring strategically important new geography and capability to our Healthcare & 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 acquired Woelco AG, a supplier of durable labeling systems for industrial and automotive customers based near Stuttgart with subsidiary operations in both the US and China. The $27 million net cash purchase consideration includes a state-of-the-art manufacturing facility held in a related German property company. The company’s 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 VP.
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 UK. Its 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.
CCL also invested $6 million in cash to increase its stake to 75% in the tube manufacturing JV 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 & Personal Care business with a minority interest adjustment. CCL-Taisei’s 2015 sales were nominal with start-up costs.
“We have known the management of Label Art for many years and welcome them and the deeply experienced Woelco team to CCL,” said Geoffrey T. Martin, president and CEO of CCL. “These acquisitions bring strategically important new geography and capability to our Healthcare & 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.”