CCL Industries Inc. a producer of label solutions for the consumer packaging and healthcare markets, announced today that it has signed a binding agreement to acquire the shares of Ferroprint Western Cape (Pty) Ltd., a wholly owned subsidiary of Ferroprint (Pty) Ltd., based in Durban, South Africa. Ferroprint Western Cape (Pty) Ltd. will immediately change its trading name to "CCL Label" while its former parent company will continue to trade as "Ferroprint."
The acquired business has a focused factory near Cape Town in the wine growing region of Stellenbosch, South Africa. For the last 12 months estimated revenues were $3.3 million. The debt-cash free purchase price will be $2.7 million representing the approximate value of tangible assets of the acquired company. Final closing is expected to be completed before the end of March.
Geoffrey Martin, President and CEO of CCL Industries commented, "South Africa is a strategic market for our global beverage business which we currently service through a local CCL sales company importing from our European and Australian facilities. This bolt on acquisition will give us a manufacturing presence to build our position in this important beverage market at an attractive valuation for shareholders."
Source: CCL Industries