CCL buys Singapore labeller with facilities in Malaysia

Speciality label and packaging solutions provider CCL Industries Inc. has acquired Zephyr Company (Private) Limited, a privately held company headquartered in Singapore, and its two Malaysian subsidiaries in Penang and Johore, purchasing 100% of the outstanding equity interest in the three entities in both countries from multiple private shareholders.

Zephyr is a label converter focused on customers in the electronics industry. Sales in calendar 2015 were approximately US$36 million with an adjusted EBITDA estimated at US$6 million. Purchase price consideration net of cash acquired, subject to customary completion adjustments, is estimated at US$39 million and includes a large owned manufacturing facility in Singapore.

Geoffrey T. Martin, President/CEO of CCL, commented, "We are delighted to welcome CS Ko and his deeply experienced people to CCL. Zephyr will immediately change its trading identity to CCL Design and continue to focus on the electronics industry in South East Asia. The new business reports locally to Jim Anzai, Vice President and Managing Director, CCL Asia, and forms an integral part of the global CCL Design initiative. These new geographies for CCL are important for the development of our overall business in Asia complementing our strong presence in the electronics industry in China following the acquisition of Worldmark in 2015."

It paid US$252 million for Worldmark, which has eight plants in China, Mexico and Hungary.

Toronto, Ontario-based CCL was founded in 1951. It provides packaging products to the Home & Personal Care, Food & Beverage, Healthcare and Specialty markets worldwide. CCL has more than 13,000 workers at 122 production sites in 61 countries.