Canada’s CCL Industries Agrees to Buy Innovia for $840 MillionBy
CCL Industries Inc., a Canadian labels and packaging manufacturer, agreed to buy Innovia Group of the U.K. for about C$1.13 billion ($840 million) from a consortium of private equity investors managed by the Smithfield Group LLP.
The Willowdale, Ontario-based company will fund the acquisition with an existing revolving credit facility and a new $450 million, two-year term loan provided by a group of banks led by Bank of Montreal, according to a statement Monday.
The deal will boost CCL’s 2017 sales to more than C$5 billion on a pro-forma basis, the company said. The transaction is subject to regulatory and change of control approvals as well as customary completion procedures with closing expected by the end of the first quarter of next year, CCL said.
Innovia, based in Wigton, U.K., makes specialty films for label, packaging and security applications, with facilities across the U.K., Belgium and Australia. It also has specialized polymer banknote operations in the U.K., Australia and Mexico. Innovia is expected to generate net revenue of approximately C$570 million, CCL said.
The Smithfield Group buys and overhauls businesses headquartered in Europe and North America.