CCL sells plant
to Color Ad Label
CCL Industries Inc. announced in July the sale of its label manufacturing plant in Winnipeg, Manitoba, to Color Ad Label, a privately held company with interests in flexible packaging and labels. CCL Label Winnipeg focused on local customers in Western Canada with sales of approximately $10 million, and forecasted EBITDA of $1.5 million in the current year. The purchase price was $7 million.
The company also announced the purchase of Graphiques Apex Inc., a privately held Montreal based manufacturer of instructional leaflets for leading companies in the pharmaceutical industry. Graphiques Apex has annualized sales of approximately $4 million and EBITDA of approximately $0.9 million. The purchase price for the business was $3.7 million including assumed debt. Both of these transactions were completed early in July.
“It is strategically important to build our pharmaceutical business in Canada and provide our important global customers with the same products that we offer to the pharmaceutical industry in the United States and Europe,” says Geoffrey T. Martin, CCL Label president. “With the sale of the Winnipeg plant, we increase the focus of our Canadian operations on our key markets including personal care, healthcare and specialty products.”
(See page 34 for more CCL news.)