CCL Industries Inc., Toronto, ON, Canada, has signed a binding agreement to acquire the shares of Ferroprint Western Cape (Pty) Ltd., a wholly owned subsidiary of Ferroprint (Pty) Ltd., based in Durban, South Africa. Ferroprint Western Cape will immediately change its trading name to CCL Label, while its former parent company will continue to trade as Ferroprint.
The acquired business has a factory near Cape Town in the wine growing region of Stellenbosch, South Africa. For the past 12 months, estimated revenues were CAN$3.3 million. The debt-cash free purchase price will be $2.7 million, representing the approximate value of tangible assets of the acquired company. The closing is expected to be completed before the end of March.
"South Africa is a strategic market for our global beverage business, which we currently service through a local CCL sales company importing from our European and Australian facilities,” says Geoffrey Martin, president and CEO of CCL Industries. “This bolt on acquisition will give us a manufacturing presence to build our position in this important beverage market at an attractive valuation for shareholders."
CCL Industries now employs approximately 5,400 people and operates 55 production facilities. It 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.