CCL Industries, a Toronto-based specialty label, security and packaging solutions company, has agreed to acquire Graphic West International, a Danish specialized digital printer of short-run folding cartons for the pharmaceutical and medical device industries. The deal, expected to close in the fourth quarter, reflects a net enterprise value of about C$36 million. Graphic West has been backed since 2016 by Blue Equity.
CCL Industries Signs Agreement to Acquire Graphic West
TORONTO, Aug. 10, 2020 (GLOBE NEWSWIRE) — CCL Industries Inc. (TSX:CCL.A) (TSX:CCL.B), a world leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses and consumers, announced today it has signed a binding agreement to acquire Graphic West International ApS (“GWI”), a specialized digital printer of short-run folding cartons for the pharmaceutical and medical device industries with operations in Europe and North America.
GWI is headquartered in Horsholm, Denmark, with manufacturing operations in Nowogard, Poland, and Tyler, Texas, in the United States, The enterprise value of the transaction, net of cash and debt, is approximately $36 million. Sales for the twelve months ending June 30, 2020, are approximately $42 million with an estimated adjusted EBITDA of $6 million. GWI will be integrated into CCL’s Healthcare & Specialty business and will immediately adopt their trading identity.
Geoffrey Martin, President and Chief Executive Officer of CCL Industries Inc. commented, “In late 2015, CCL made a successful greenfield investment in short-run, digitally printed cartons at our Montreal plant in Canada, exclusively targeted at pharmaceutical customers. GWI shares our philosophy of digitizing workflows and manufacturing technologies with complete focus on the unique needs of customers in this sector. We welcome Jesper Holm, GWI’s founder, and his team as together we look to take this exciting new concept to healthcare customers globally alongside our highly complementary label products.”
Closing of this transaction is subject to regulatory approvals and expected to close early in the fourth quarter 2020.
For more information on CCL, visit – www.cclind.com or contact:
Senior Vice President and Chief Financial Officer
CCL Industries Inc. employs approximately 21,700 people operating 183 production facilities in 42 countries with corporate offices in Toronto, Canada, and Framingham, Massachusetts. CCL is the world’s largest converter of pressure sensitive and specialty extruded film materials for a wide range of decorative, instructional, functional and security applications for government institutions and large global customers in the consumer packaging, healthcare & chemicals, consumer electronic device and automotive markets. Extruded & laminated plastic tubes, aluminum aerosols & specialty bottles, folded instructional leaflets, precision decorated & die cut components, electronic displays, polymer banknote substrate and other complementary products and services are sold in parallel to specific end-use markets. Avery is the world’s largest supplier of labels, specialty converted media and software solutions for short-run digital printing applications for businesses and consumers available alongside complementary products sold through distributors, mass-market stores and e-commerce retailers. Checkpoint is a leading developer of RF and RFID based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions, for the retail and apparel industries worldwide. Innovia is a leading global producer of specialty, high performance, multi-layer, surface engineered films for label, packaging and security applications. The Company is partly backward integrated into materials science with capabilities in polymer extrusion, adhesive development, coating & lamination, surface engineering and metallurgy; deployed as needed across the four business segments.