CCL Industries Inc. is making what the company calls a “bolt-on” acquisition in Singapore and Malaysia.
The Toronto-based specialty label and packaging company is buying Zephyr Co. (Private) Ltd. from multiple private shareholders for $39 million.
Zephyr is a label converter focused on the electronics industry, CCL said, and had sales of about $36 million last year. Adjusted earnings before interest, taxes, depreciation and amortization were about $6 million.
The newly acquired company is headquartered in Singapore and has two subsidiaries in Penang and Johor, Malaysia.
“Zephyr will immediately change its trading identity to CCL Design and continue to focus on the electronics industry in Southeast Asia,” CCL CEO Geoffrey T. Martin said in a statement. “These new geographies for CCL are important for the development of our overall business in Asia, complementing our strong presence in the electronics industry in China following the acquisition of Worldmark in 2015."
The Worldmark deal, at $252 million including debt, brought six plants in China and one each in Mexico and Hungary.
CCL has more than 13,000 workers at 122 production sites in 61 countries.
The company calls itself the world's largest converter of pressure sensitive and extruded film materials.