CCL Industries Signs Agreement to Acquire Spirits Label Company in
TORONTO, ONTARIO -- (Marketwire) -- 11/20/12 -- CCL Industries Inc.
(TSX:CCL.A)(TSX:CCL.B), a world leader in specialty packaging
solutions for the consumer products and healthcare industries,
announced today that it has signed a heads of agreement to acquire
through the purchase of shares John Watson & Co. Ltd., a privately
owned label converter located in Glasgow, Scotland with estimated
sales of approximately U.K. pounds 12 million in the current year.
The planned acquisition produces labels for leading distillers of
Scotch whisky and other spirits and will complement the global
network of CCL Label Wine & Spirits operations in Australia, Asia,
Latin America, Russia, South Africa, the UK and the United States.
The transaction is subject to contract, with terms based on the
financial performance of John Watson & Co. for calendar year 2013.
Specific details will be disclosed following completion of the
planned transaction in early 2014.
In the interim period the two companies will cooperate to serve
common customers and leverage combined supplier relationships. This
coordination will be led by Guenther Birkner, President, Food &
Beverage Worldwide together with the management teams of John Watson
& Co. and CCL Label Wine & Spirits business units.
John Watson, whose family have owned the shares of the company since
inception, will remain associated with the business in an advisory
capacity. Robert McLachlan and Allan McDonnell will enter into
continuing employment agreements as joint Managing Directors. The
acquired company will, on completion of the transaction, change its
trading name to CCL Label and become a part of the global Wine &
Geoffrey Martin, President and CEO of CCL Industries, said, "The Wine
& Spirits sector continues to be attractive for us as we have built
our business by a series of acquisitions, joint ventures and
greenfield investments around the world. Guenther and his key people
have held John Watson & Co. in high regard for a long time and
believe the great team that John assembled will allow us to get
closer to important global customers located in Scotland. We also
plan to support the planned acquisition with further investment in
ration in Glasgow."
John Watson, Chairman of John Watson & Co. said, "We are delighted to
have concluded heads of agreement with CCL and look forward to the
future with confidence and enthusiasm. We believe CCL will be a very
good home for John Watson & Co. and that it will take the business to
the next level. This has been a personal crusade in developing
Watson's over 46 years and I would like to thank all my dedicated
Directors, staff and others associated with this business for their
unswerving loyalty and support."
With headquarters in Toronto, Canada, CCL Industries now employs
approximately 6,600 people in 74 plants globally located to meet the
sourcing needs of large international customers. CCL Label is the
world's largest converter of pressure sensitive and film materials
for label applications and sells to leading global customers in the
consumer packaging, healthcare, automotive and consumer durable
segments. CCL Container and CCL Tube are leading producers of
aluminum aerosol cans, bottles and extruded plastic tubes for the
consumer products industry in North America.
This press release contains forward-looking information and
forward-looking statements, as defined under applicable securities
laws, (hereinafter collectively referred to as "forward-looking
statements") that involve a number of risks and uncertainties.
Forward-looking statements include all statements that are predictive
in nature or depend on future events or conditions. Forward-looking
statements are typically identified by the words "believes,"
"expects," "anticipates," "estimates," "intends," "plans" or similar
expressions. Statements regarding the operations, business, financial
condition, priorities, ongoing objectives, strategies and outlook of
the Company, other than statements of historical fact, are
forward-looking statements. Specifically, this press release contains
forward-looking statements regarding the anticipated completion and
success of the acquisition; and the Company's expectations regarding
general business and economic conditions. Forward-looking statements
are not guarantees of future performance. They involve known and
unknown risks and uncertainties relating to future events and
conditions including, but not limited to, the evolving global
financial crisis and its impact on the world economy and capital
markets; the impact of competition; consumer confidence and spending
preferences; general economic and geopolitical conditions; currency
exchange rates; interest rates and credit availability; technological
change; changes in government regulations; risks associated with
operating and product hazards; and CCL's ability to attract and
retain qualified employees. Do not unduly rely on forward-looking
statements as the Company's actual results could differ materially
from those anticipated in these forward-looking statements.
Forward-looking statements are also based on a number of assumptions,
which may prove to be incorrect, including, but not limited to,
assumptions about the following: global economic recovery and higher
consumer spending; improved customer demand for the Company's
products; continued historical growth trends, market growth in
specific segments and entering into new segments; the Company's
ability to provide a wide range of products to multinational
customers on a global basis;
the benefits of the Company's focused strategies and operational
approach; the achievement of the Company's plans for improved
efficiency and lower costs, including stable aluminum costs; the
availability of cash and credit; fluctuations of currency exchange
rates; the Company's continued relations with its customers; and
general business and economic conditions. Should one or more risks
materialize or should any assumptions prove incorrect, then actual
results could vary materially from those expressed or implied in the
forward-looking statements. Further details on key risks can be found
in the MD&A section of CCL's 2011 Annual Report, particularly under
Section 4: "Risks and Uncertainties." CCL's annual and quarterly
reports can be found online at www.cclind.com and www.sedar.com or
are available upon request. Except as otherwise indicated,
forward-looking statements do not take into account the effect that
transactions or non-recurring or other special items announced or
occurring after the statements are made may have on CCL's business.
Such statements do not, unless otherwise specified by the Company,
reflect the impact of dispositions, sales of assets, monetizations,
mergers, acquisitions, other business combinations or transactions,
asset write-downs or other charges announced or occurring after
forward-looking statements are made. The financial impact of these
transactions and non-recurring and other special items can be complex
and depends on the facts particular to each of them and therefore
cannot be described in a meaningful way in advance of knowing
specific facts. The forward-looking statements are provided as of the
date of this press release and the Company does not assume any
obligation to update or revise the forward-looking statements to
reflect new events or circumstances, except as required by law.
CCL Industries Inc.
Senior Vice President a
nd Chief Financial Officer
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