Acquisition helps CCL in personal care labels and tubes

By Jim Johnson
Senior Staff Reporter

Published: January 21, 2014 4:21 pm ET
Updated: January 21, 2014 4:22 pm ET

Related to this story

Topics Mergers & Acquisitions, Packaging, Extrusion

CCL Industries Inc. is making a $71 million push deeper into the personal care label and tube business with the purchase of a pair of companies with common ownership.

Toronto-based CCL expects to close a deal during the first quarter of this year for Sancoa and TubeDec, companies principally owned by Joe Sanski in New Jersey.

Sancoa and TubeDec had combined sales of $82.5 million last year and earnings before interest, taxes, depreciation and amortization of about $10.1 million, CCL Industries said.

The purchase price includes both money paid to the owners as well as assumption of debt. CCL declined to provide a breakdown when announcing the deal.

“It’s a very good strategic fit for CCL because we’re in the label and tube business much like Sancoa,” said Sean Washchuk, CCL chief financial officer, in a telephone interview. He also cited “the outstanding quality and reputation of the company.”

“We’ve known Joe Sanski for a long time and he’s known us. Joe wanted a legacy for his business and for his team and he wanted a good home for that business,” the CFO said. “It was just a mutually agreed upon transaction.”

CCL is attracted to the deal because of some similarities in the markets that both firms serve.

“Our tube business and a big chunk of our label business, not all of it, is in the personal care space. And all of Joe’s business, both the label and the tube, is in personal care as well,” Washchuk said.

News of CCL’s deal for Sancoa and TubeDec came just a day after CCL also said it was increasing its interest in Acrus-CCL, a wine label company in Chile. CCL spent $1.2 million for an additional 12.5-percent stake in the firm and now owns 62.5 percent of that operation.

CCL, with approximately 10,000 workers, has 89 production facilities in 25 countries. And acquisitions have played a major role in the company’s growth, especially recently.

It was just about a year ago that the company indicated it had approximately 6,600 employees and 74 production facilities around the world.

Since that time, acquisitions included a $500 million deal for Avery Dennison’s office and consumer products and designed and engineered solutions businesses.

“We look to acquire companies at attractive multiples that fit strategically with our business. We try to remain to our core strategic view that we want to buy companies that are in the label industry or adjacencies to it. We’re looking for companies that expand our geographic reach, our technical expertise and our customer base,” Washchuk said.

CCL is not talking about financial particulars, at this point, beyond the purchase and EBITDA numbers. But CEO Geoffrey T. Martin had this to say in a statement: “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."

Sanski and the management team at Sancoa and TubeDec are joining CCL, the company said.

Sancoa has corporate headquarters in Lumberton, N.J., where its principal label production also is situated within the location’s 160,000 square feet. TubeDec, with extrusion and side seam tube operations, is located at a 60,000-square-foot site in Moorestown, N.J., according to the company’s website.


Comments

Acquisition helps CCL in personal care labels and tubes

By Jim Johnson
Senior Staff Reporter

Published: January 21, 2014 4:21 pm ET
Updated: January 21, 2014 4:22 pm ET

Post Your Comments


Back to story


More stories

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla...    More

Image

Irish packaging group Smurfit Kappa opens film plant in Spain

November 26, 2014 6:00 am ET

Global packaging group Smurfit Kappa Group plc has responded to growing demand for its bag-in-box liquid container/dispensers by opening a new plant...    More

Image

Deal adds U.K. plant to DelStar

November 25, 2014 12:47 pm ET

Schweitzer-Mauduit International Inc. (SWM) is acquiring certain assets from the advanced wound management division of London-based Smith & Nephew...    More

Image

Onex buying packaging group SIG Combibloc

November 24, 2014 9:05 am ET

ex Corp. will buy SIG Combibloc Group, the Switzerland-based manufacturer of aseptic carton packaging and plastics closures from New Zealand's Rank Gr...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events