CCL Industries acquires functional labels supplier Worldmark

CCL Industries Inc, a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers, announced today that it has acquired privately owned Worldmark Ltd, a leading supplier of functional labels manufactured from proprietary pressure sensitive materials for world leading designers and brand owners in the technology sector.

The new business becomes a market focused unit of CCL Design and will change its trading identity by the end of 2015.

The acquired operation, headquartered in Scotland, has 1,900 employees distributed across six manufacturing plants in China, one each in Mexico and Hungary plus sales offices and prototyping design centres in Silicon Valley, Taiwan and other strategically important locations close to brand owner customers around the world. The acquired business has clean room manufacturing capabilities in coating and converting, designing products from materials science through to final form and function in conjunction with its global customers. 2015 sales are forecast at approximately US$210 million, entirely focused on customers in the technology sector: smart phones, personal computers & tablets, servers, routers and new concept developments. 2015 EBITDA, forecast at approximately US$35 million, is expected to rise to US$40 million in 2016 with planned business growth and synergies. The purchase price consideration net of cash acquired but including debt assumed is approximately US$252 million.

Geoffrey T Martin, President and CEO of CCL, said, "We have admired Worldmark for many years as they built a unique, leading global position in the technology sector and are very excited to welcome their management team and employees to CCL where they will continue to focus on this fast moving industry. Two thirds of the revenue base is derived in Asia, significantly expanding our presence in this important part of the world. Developing proprietary materials specifically designed for challenging end use applications has become an important operating model for the Company; this acquisition brings these capabilities to CCL Design."

The acquisition of Worldmark has been reviewed by Martin and CCL’s Senior Vice President & CFO, Sean Washchuk, at the Robert W. Baird Industrials conference for investors held recently in Chicago.

CCL Industries employs approximately 12,900 people operating 113 production facilities in 30 countries on 6 continents with corporate offices in Toronto, Canada and Framingham, Massachusetts. CCL Label is the world's largest converter of pressure sensitive and extruded film materials for a wide range of decorative, instructional and functional applications for large global customers in the consumer packaging, healthcare & chemicals, consumer durable, electronic device & automotive markets.

Extruded & laminated plastic tubes, folded instructional leaflets, precision decorated & die cut components, electronic displays and other complementary products and services are sold in parallel to specific end-use markets. Avery is the world's largest supplier of labels, specialty converted media and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors and mass market retailers.

CCL Container is a leading producer of impact extruded aluminum aerosol cans and bottles for consumer packaged goods customers in the US and Mexico. CCL partly backward integrates with materials science capabilities in polymer extrusion, adhesive development and coating, surface engineering and metallurgy that are deployed across all three business segments.


Copyright (c) 2015 www.plasticsandrubberasia.com. All rights reserved.