CCL Industries Inc., Toronto, ON, Canada, has signed a binding agreement to acquire Eltex GmbH, Solingen, Germany, the manufacturer of a patented pressure sensitive label which replaces solid aluminum riveted rating plates widely used in the automotive, consumer durable and information technology hardware markets.
For 2008, estimated revenues for Eltex are CAN$9.7 million, with an anticipated EBITDA of approximately $1.5 million. The debt-cash free purchase price on closing, scheduled for December 31, will be approximately CAN$5.4 million.
Geoffrey Martin, president of CCL Industries, says, “Eltex will be merged with CD-Design, the business we acquired earlier this year, now renamed CCL Design, which markets highly complimentary products to the same industry sector. Coincidentally, CCL Design and Eltex are located in the same industrial park in Germany. We will continue to use the Eltex brand name for the patented product line the business produces and plan to make it available on a global basis. We are delighted that the management of the business will remain with us and become part of CCL Design.”
CCL Industries now employs approximately 5,300 people and operates 54 production facilities around the world. CCL Label is the world's largest converter of pressure sensitive and film materials for label applications and sells to leading global customers in the consumer packaging, healthcare, automotive and consumer durable markets. CCL Container and CCL Tube are leading producers of aluminum aerosol cans, bottles and extruded plastic tubes for consumer packaged goods customers in the United States, Canada and Mexico.