CCL Industries buys Innovia for $1.13bn
Innovia Group, which produces Biaxially Oriented Polypropylene (BOPP) films for labels, packaging and security applications in the confectionery, bakery, biscuits and dairy industries, has agreed to be acquired by CCL Industries for C$1.13 billion.
Innovia has film extrusion, coating and metallising facilities across the UK, Belgium and Australia. For 2017, the business is expected to generate net revenue of around C$570m and estimated EBITDA of C$155m.
CCL, which operates from 156 production facilities across 35 countries, believes it has a complementary presence in the markets in which Innovia operates, with capabilities in security printing, polymer extrusion and surface engineering that are deployed across all business segments. Innovia’s pre-eminent R&D and high technology capabilities provide a platform for CCL to grow and further enhance its offer in these markets, it noted.
Up until now, Innovia has been run by a consortium of UK based private equity investors managed by The Smithfield Group.
The transaction, which is subject to regulatory and other change of control approvals, is expected to close by the end of the first quarter next year.
Innovia Group CEO Mark Robertshaw said, “CCL recognises and values Innovia’s world leading technology, R&D and differentiation in Films and Security and sees a high degree of complementarity with CCL’s own capabilities and markets to establish new growth opportunities for their business.”
CCL president and CEO Geoffrey Martin added, “We expect to find significant operational, customer and product innovation growth opportunities between Innovia and our end use facing businesses at CCL Label, CCL Design, Checkpoint and Avery.”
