CCL Industries Inc. has signed a binding agreement to acquire Sancoa & TubeDec, privately owned companies with common shareholders supplying labels and plastic tubes to home & personal care customers in North America from three plants located in New Jersey and one in Ohio. The agreed purchase price is $71 million including the settlement of financial debt. Closing is scheduled during the first quarter of 2014 subject to customary completion conditions.
The new acquisition will trade as part of CCL Label's global Home & Personal Care business unit headed by Ben Rubino, president. Sancoa & TubeDec's combined sales in 2013 were $82.5 million with an adjusted EBITDA of approximately $10.1 million.
Geoffrey Martin, President & CEO of CCL Industries, comments, "Joe Sanski, the principal shareholder of Sancoa & TubeDec, built one of the most respected companies in the world label industry. Over three decades he pioneered numerous, innovative label and tube decorating technologies that are globally recognized by customers, suppliers and peers. We are very pleased Joe chose us as a legacy home for the business that he founded and welcome both him and his management team on their joining CCL; making the integration process seamless for our combined organization and customers."
Martin concludes, "We expect to unlock many financial and operational synergies which we will announce in more detail at the closing of the transaction later this quarter."
CCL Industries employs approximately 10,000 people and operates 89 production facilities in 25 countries on 5 continents with corporate offices in Toronto, Canada, and Framingham, Massachusetts. CCL Label is the world's largest converter of pressure sensitive and film materials for a wide range of decorative, instructional and functional applications for large global customers in the consumer packaging, healthcare, automotive and consumer durables markets.