TORONTO — CCL Industries Inc. plans to expand in plastics and tubular packaging by purchasing Teledyne Packaging for about C$45 million (US$32.4 million).
Teledyne, based in Chester, Pa., makes metal and plastic composite collapsible tubes for products such as toothpaste, metal tubes, and plastic closures and bottles. The closures and bottles account for about 10 percent of its annual sales of C$55 million (US$39.6 million), estimated Kenneth Donahue, Teledyne Packaging president.
CCL of Toronto significantly boosted its plastics presence in July when it acquired Seda Specialty Packaging Corp. of Los Angeles. Seda extrudes polyethylene tubes for personal-care and pharmaceutical markets, and molds plastic caps, closures, jars and bottles at plants in Los Angeles and Plattsburgh, N.Y.
CCL paid about US$185 million for Seda, which expected US$70 million in sales this year. CCL's Victor Tube operation injection molds caps.
CCL Container Manufacturing President Rami Younes estimated his firm's total plastics sales at about C$100 million (US$72 million), or about 10 percent of CCL's total sales. CCL's main businesses formulate and manufacture consumer products for brand name companies and supply specialty packaging.
Teledyne Packaging acquired its core plastics operation in San Jose, Costa Rica, early in 1996. The operation injection molds closures and injection and blow molds PE, PVC and PET bottles, Donohue said. CCL also will get facilities in Chester; Swedesboro, N.J.; and Carrolton, Ky.
CCL planned to complete the Teledyne purchase Oct. 31. Younes said his firm will place Teledyne into its CCL Container Manufacturing division, which runs Seda and Victor Tube. Wayne McLeod, CCL president and chief executive officer, said in a news release that the purchase is consistent with CCL's strategy to expand its tube business.
Donahue said Teledyne Packaging's parent company, Allegheny Teledyne Co. of Pittsburgh, decided the packaging business was no longer strategic. Several other Allegheny Teledyne businesses, none plastics related, are also considered noncore since stainless steel products maker Allegheny Ludlum Corp. and diverse conglomerate Teledyne Inc. merged about 14 months ago.
In other news, CCL said separately it agreed to sell its Kolmar Cosmetics division and plans to sell it Powder contract manufacturing and Parkfields sterile liquid pharmaceutical businesses.