CCL anticipates that the final purchase price will be approximately US$10 million in a combination of cash and assumed debt. Sertech sales were $11.2 million in 2010 with EBITDA of approximately $2.4 million. Jeff Adesko, William McDonough and Michael Bergeron, the founders of Sertech, have signed long-term employment agreements as part of the transaction and will join the Healthcare Solutions business group of CCL Label North America, led by VP/GM Jim Sellors. Sertech will immediately change its trading name to CCL Label.
“The healthcare sector continues to be attractive for us and we have been very successful with similar acquisitions in this product space in the recent past in North America,” says Geoffrey Martin, president of CCL Industries. “The excellent Sertech facility in Chicago and the great team that Jeff assembled while building the business will also allow us to get closer in many respects to pharmaceutical customers based in the Midwest region.”
Based in Toronto, Canada, CCL Industries (TSX:CCL.A, TSX:CCL.B) now employs 5,900 people in 62 plants around the world. CCL Label is the world’s largest converter of pressure sensitive and film materials for label applications and sells to customers in the consumer packaging, healthcare, automotive, and consumer durable segments. CCL Container and CCL Tube are producers of aluminum aerosol cans, bottles and extruded plastic tubes for the consumer products industry in North America.