CCL Industries completes purchase of 50% stake in Dubai-based group of label companies, Pacman-CCL, from private equity firm Albwardy Investment in deal valued at US$18.5M
September 15, 2011
– CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B), a world leader in specialty packaging solutions for the consumer products and healthcare industries, announced today that it has completed the purchase of its 50% interest in Pacman-CCL announced in March 2011. CCL's interest was acquired from Albwardy Investment, which had full ownership of this group of label companies before CCL's purchase.
Pacman-CCL is based in Dubai in the United Arab Emirates with additional operations in Cairo, Egypt, Muscat, Oman and a planned start up in Jeddah, Saudi Arabia in the current year. Albwardy Investment retains the remaining 50% economic interest in Pacman-CCL. The business had previously been operating under a CCL Label license agreement, which included territory rights for the Middle East and India, since late 2009. The total purchase price of US$18.5 million included a US$2.0 million deposit on signing paid in the second quarter of 2011 with the remaining balance paid on closing.
The new venture is expected to be immediately accretive to earnings, which will be reflected in the Company's 2011 fourth quarter results.
With headquarters in Toronto, Canada, CCL Industries now employs approximately 6,200 people in 66 plants globally located to meet the sourcing needs of large international customers. CCL Label is the world's largest converter of pressure sensitive and film materials and sells to leading global customers in the consumer packaging, healthcare, and consumer durable segments. CCL Container and CCL Tube produce aluminum cans, bottles and plastic tubes for the consumer products industry in North America.