CCL Industries Inc. announced its largest acquisition ever on Wednesday, a $500-million (U.S.) cash deal to acquire the Avery line of labelling products and other assets from California-based Avery Dennison Corp.
The Toronto-based label and container maker is buying two business units with $910-million in combined annual revenue in calendar 2012, about equal to what CCL generates from its current operations around the world.
"This acquisition has the potential to transform our company at many levels," CCL president and CEO Geoffrey Martin said in a release.
"This acquisition is the largest in CCL's history and takes the company's pro-forma annual revenue above $2-billion for the first time," Mr. Martin said.
"We are acquiring the Avery brand as part of the transaction to build on the franchise established for many decades for labels and other printable media that consumers and businesses use in digital computer printers around the world."
Besides acquiring Avery Dennison's office and consumer label business, CCL will buy a unit that provides designed and engineered solutions.
CCL Industries employs some 6,600 people in 75 plants around the world.
Its CCL Label division sells to global customers in the consumer packaging, health-care, automotive and consumer durable segments. CCL Container and CCL Tube produce aluminum aerosol cans, bottles and extruded plastic tubes for the consumer products industry in North America.
Subject to regulatory approval the deal is expected to close by mid-year. A syndicate of banks has committed to provide debt financing to close the transaction.