CCL rescues former Avery-MBO converter
Merroc Ltd. in Cumbernauld, near Glasgow, Scotland, has found a buyer after going into receivership. The firm was rescued by CCL-Pachem, saving 15 jobs. The officially-appointed receiver — whose job is to sell the assets of failed businesses — was appointed by Merroc on June 30. Supported by customers, the company continued to trade, but around 50 staff were made redundant.
Merroc was bought out by its management team from Avery Dennison in 2001. Its turnover for 2004 was around £4.61 million ($US8.37 million). According to the receiver, Merroc’s downfall followed an expansion into business that proved to be loss-making. Its specialities included resealable labels, security products, booklet labels for international clients, as well as color chip labels for European paint manufacturers. CCL-Pachem’s UK site in Rhyl, north Wales, also supplies decorative labels for the paint industry.
• Toronto-based CCL Industries has bought the remaining 49 percent of its European joint venture, CCL-Pachem. CCL began a joint venture with Pachem AG, an Austrian label and packaging group, in 2003. It has operations in Austria, France and the UK producing pressure sensitive, shrink sleeve and in-mold labels.