CCL Industries to Acquire Adelbras Brazil

CCL Industries Inc. announced it has signed a binding agreement to acquire privately owned Adelbras Indústria e Comércio de Adesivos Ltda. and Amazon Tape Indústria e Comércio de Fitas Adesivas Ltda. (collectively “Adelbras”), headquartered in Vinhedo near Sao Paolo with an additional operation in Manaus in the Amazon tax free zone.

Adelbras is Brazil’s second largest producer of adhesive tapes with the majority of sales derived from masking, bonding and packaging applications broadly sold through retailers and distributors to consumers and small businesses under the Adelbras brand name. A smaller proportion is sold for industrial use directly to larger customers, mainly in the durable goods space.

Fiscal 2021 sales were $105.2 million with adjusted EBITDA estimated at $18.7 million. The debt free, all cash purchase consideration, subject to customary closing conditions, is approximately $155.4 million; closing is planned for the second quarter of 2022. The new business will largely be reported as part of Avery, with the smaller industrial portion added to CCL Design.

“We are very excited to expand our highly successful operations in Brazil and welcome the Adelbras team to CCL,” Geoffrey T. Martin, president and CEO of CCL Industries Inc., said. “The new business will be headed by Luis Jocionis, group vice president CCL Industries South America.”