A new rigid packaging company has sprung up from the spinoff of four former CCL Industries Inc. businesses.
IntraPac LP of Toronto acquired CCL's aluminum tube plant in Harrisonburg, Va.; a laminate tube facility in Swedesboro, N.J.; a small, injection molded plastic jar plant in Plattsburgh, N.Y.; and CCL's container plant in San Jose, Costa Rica. The Costa Rica plant mainly injection molds containers for markets in Central America, Steve Lancaster, CCL chief financial officer, said in a telephone interview.
Toronto-based CCL owns half of IntraPac, with the remainder held by former CCL senior executive Gary Ullman and private investors Douglas and Hollis Brent. IntraPac has the option to acquire CCL's equity in the IntraPac partnership, which CCL values at C$13 million (US$9.4 million).
CCL sold the businesses for C$74 million (US$53.3 million) in cash and its equity position in IntraPac. Last year the businesses had sales of C$119 million (US$85.7 million) and operating profit of C$11.3 million (US$8.1 million). CCL could receive additional funds from the sale if the acquired businesses exceed certain benchmarks.
Donald Lang, CCL president and chief executive officer, said CCL sold the businesses because they are noncore. The firm's core businesses are specialty aluminum and plastics packaging, labels, and contract manufacturing and packaging of consumer products.