CCL Industries Inc. is spending $12 million to acquire a specialty label business that started out in a basement 13 years ago and has grown into a multimillion-dollar business.
The Toronto-based company is buying Mabel's Labels Inc. and Mabel's Labels Retail Inc., which makes durable, personalized identification labels for children and families, CCL said.
Mabel's Labels sales are expected to be $9.5 million for the fiscal year ending March 31, 2016, with adjusted earnings before interest, taxes, depreciation and amortization of about $2.8 million, CCL reported.
Mabel's Labels becomes part of CCL's Avery labels segment that was acquired in 2013.
Mabel's Labels was founded by four women — Julie Cole, Julie Ellis, Cynthia Esp and Tricia Mumby — more than a decade ago and is based in Hamilton, Ontario. They will stay with the company, which will keep its name.
The women, said Avery North America President Jim Sellors in a statement, “have built a great business, innovative product portfolio and market leading brand for families with kids. We are very pleased that Mabel's shareholders have chosen us as a legacy home for their business they founded.”
Mabel's Labels makes a wide variety of personalized labels that can be used and identify ownership of everyday items such as clothing, water bottles and sporting equipment, for example.
“This is the third bolt on acquisition we have made since acquiring Avery in 2013 as we continue to build our presence in the consumer and small business label market powered by software and digital printing,” CCL CEO Geoffrey Martin said in a statement.