CCL Industries to acquire Treofan Americas in US$255 million deal

CCL Industries, a global leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses and consumers has announced that it has signed a binding agreement to acquire Treofan Americas in a US$255 million deal.

In addition to Treofan Americas, CCL will also acquire Trespaphan Mexico Holdings from parent company, M&C S.p.A., an Italian public company listed on the Milan stock exchange. The entities to be acquired represent the “Treofan Americas” business in the United States, Latin America and Canada. M&C S.p.A. would continue to control the equivalent European business through Treofan Germany GmbH & Co. KG and Treofan Italy S.p.A which form no part of the transaction. The acquired Treofan entities will trade under the Innovia brand name post close with M&C S.p.A. retaining rights to the Treofan name.

Geoffrey T. Martin, President and Chief Executive Officer, commented, “The proposed acquisition gives Innovia a solid strategic footprint for BOPP films in both North America and Europe with highly complementary technologies and products.”

”The business will be combined with Innovia in the Americas under a common brand and the leadership of Guenther Birkner, who heads our label interests globally in the food and beverage and healthcare and specialty markets as well as this important new strategic initiative in the materials science arena. I’d like to take this opportunity to acknowledge the deeply experienced Treofan Americas people; we are excited about the prospect of them joining our Company and look forward to their contributions as we move forward with this exciting new initiative.”

CCL employs over 20,000 people operating 167 production facilities in 37 countries with corporate offices in Toronto, Canada, and Framingham, Massachusetts. CCL is the world’s largest converter of pressure sensitive and extruded film materials for a wide range of decorative, instructional, functional and security applications for government institutions and large global customers in the consumer packaging, healthcare and chemicals, consumer electronic device and automotive markets.

Treofan Americas is a leading producer of biaxially oriented polypropylene film based in Zacapu, Mexico, with capacity of 60,000 tons for specialty applications in consumer packaging and label markets. Approximately 65% of sales are transacted in the United States from a sales office and distribution center in North Carolina, the remaining balance predominantly in Latin America. 2017 Treofan Americas sales were approximately US$212 million.

The purchase price, net of cash and debt assumed, is approximately US$255 million with closing anticipated in the second quarter of 2018 subject to regulatory approvals and customary completion procedures.

Treofan Americas will install a state-of-the-art 10 meter wide BOPP extrusion line in late 2018, adding 30,000 tons of capacity requiring a significant facility expansion in Mexico. The total capital expenditure on the project is estimated at US$65 million. Given the substantial investment plus legacy business growth, CCL is targeting an increase in acquired EBITDA to approximately US$55 million by 2021 based on current exchange rates.

To contact our editorial team please email us at editorial@cnsmedia.com