Skip to main content

CCL Industries is acquiring two business units from Avery Dennison Corp. in the largest acquisition in CCL’s history.

Chad McDermott/Getty Images/iStockphoto

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.

Story continues below advertisement

"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.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter