CCL acquire UK’s BOPP films producer $1.13 billion

CCL to acquire UK’s BOPP films producer for $1.13 billion

11:08 AM, 21st December 2016
CCL Industries logo

TORONTO, CANADA: CCL Industries Inc (CCL) has entered into a definitive agreement to acquire Innovia Group of companies (Innovia) for approximately $1.13 billion.

Innovia, headquartered in Wigton, UK, is a leading global producer of speciality, high performance, multi-layer, surface engineered biaxially oriented polypropylene (BOPP) films for a label, packaging and security applications. Having facilities across the UK, Australia, Belgium and Mexico with 1200 employees and sales offices in 16 countries around the world.

The deal is expected to close by the end of the first quarter 2017.

For 2017, Innovia is expected to generate net revenue of approximately $570 million and estimated EBITDA of $155 million.

CCL is buying Innovia on a debt free and net of cash from a consortium of UK-based private equity investors managed by The Smithfield Group LLP.

“This transaction is another transformative acquisition for CCL, propelling the company to world leadership in the disruptive, fast growing polymer banknote market while strengthening our depth in the materials science arena with proprietary BOPP films technology for the label, packaging and security sectors,” said Geoffrey Martin, president and CEO of CCL.

“CCL's 2017 proforma annual sales are forecast to exceed $5.0 billion post close. The transaction will be financed from existing capacity in our revolving credit facility and a new US$ 450 million, two-year term loan provided by a syndicate of banks led by Bank of Montreal. At closing our expected proforma net debt to EBITDA leverage ratio is estimated at a conservative 2.5 times, with additional balance sheet liquidity of approximately $700 million,” added Martin.

© Worldofchemicals News

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


ExxonMobil awards FEED contract to SBM Offshore

IRVING, US: Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil awards a front-end engineering and design (FEED) contra ...

Read more
TerraVia suspends algal flour supply to Soylent

SOUTH SAN FRANCISCO, US: TerraVia Holdings Inc suspends supply of its algal flour ingredients to Soylent, effective immediately. The decision to susp ...

Read more
New lactase improves production of lactose-free dairy products

A new enzyme Saphera, by Novozymes, is a lactase enzyme that sets a new standard for production and quality of a wide range of lactose-free products, ...

Read more
Fluor bags EPCM contract for new API manufacturing facility in US

IRVING, US: Fluor Corporation has been awarded an engineering, procurement, construction and management (EPCM) contract by Novo Nordisk, for its new $ ...

Read more
Sika to open first concrete admixture plant in Ethiopia

BAAR, SWITZERLAND: Sika AG is opening the first concrete admixture production plant in Ethiopia. Sika is the first-ever international company to manuf ...

Read more
Wacker acquires Antibioticos’ fermentation plant in Spain

MUNICH GERMANY/ LEON, SPAIN: Wacker BioSolutions, the life sciences and biotechnology division of the Wacker Group, is acquiring a large-scale ferment ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X