TORONTO — Packaging major CCL Industries Inc. plans to add in-house film extrusion to its labels business.
The Toronto firm announced Oct. 25 it has agreed to buy the assets of Advanced Packaging Films GmbH of Schkopau, Germany. CCL said it will pay about US$9 million in cash and assumed debt. CCL will integrate it into its global labels for food and beverages business headed by the unit's president, Guenther Birkner. The transaction is expected to close Oct. 31.
The German firm makes shrink sleeves, biaxially oriented polystyrene film, mono-oriented PS film, stretched PS film and coextruded PS film.
CCL's label business is its largest division. It makes a range of pressure-sensitive and other types of lablels from plastics and paper. Other divisions make aluminum containers and extruded plastic and aluminum tubes for consumer products.
Geoffrey Martin, CCL president and CEO, said the company will develop more materials capabilities, and bolt-on acquisitions like the German deal could be part of an important strategy.
CCL boosted its labels profile with the July 1 acquisition of Avery Dennison's office and consumer products and designed and engineered solutions businesses. Part of that purchase includes world rights to Nano-Fusion patented paint protection film with unique surface technology.