CCL Industries Inc. to acquire Innovia Group20 December 2016
The Smithfield Group, the managing shareholder of Innovia Group ("Innovia"), the global leader in specialty BOPP films and polymer banknote substrate, announces today that they have agreed an offer from CCL Industries Inc. ("CCL"), a global specialty industrial business, to acquire Innovia Group for CAN $1.13 billion (€810 million).
The transaction follows a highly successful period for Innovia during which it has substantially enhanced the capabilities and performance of both its film and banknote businesses. Increasing its strategic focus on high value add and differentiated films with world leading technology, it divested its legacy cellophane business earlier this year while making significant growth investments over the last 3 years, including a state of the art new facility to produce polymer banknote substrate in Cumbria.
CCL is the world’s largest specialty label business and is publicly quoted on the Toronto Stock Exchange with a market value in excess of CAN $8 billion. It employs more than 20,000 people and operates from 156 production facilities across 35 countries on 6 continents. CCL has a complementary presence in the markets in which Innovia operates, with capabilities in security printing, polymer extrusion and surface engineering that are deployed across all business segments. Innovia’s pre-eminent R&D and high technology capabilities provide a platform for CCL to grow and further enhance its offer in these markets.
The transaction is subject to regulatory and other change of control approvals and customary completion procedures with closing expected by the end of the first quarter, 2017.
Mark Robertshaw, Chief Executive of Innovia Group, said:
"CCL will be an excellent long term owner for the employees and customers of Innovia. CCL recognises and values Innovia’s world leading technology, R&D and differentiation in Films and Security and sees a high degree of complementarity with CCL’s own capabilities and markets to establish new growth opportunities for their business."
For further information please contact:
Global Communications Manager
Innovia Films Ltd, Lowther R&D Centre, Wigton, Cumbria, CA7 9XX, UK
Tel: +44 (0) 16973 42281 Fax: +44 (0) 16973 41452
Tulchan Communications +44 20 7353 4200
Note to Editors
Background on Innovia Group
Innovia Group is the global leader in high-tech film products for packaging and industrial applications and banknotes. Headquartered in Wigton, UK, the Group employs approximately 1200 people.
Innovia Security, its polymer banknote division, has produced c.50 billion polymer banknotes for central banks around the world, representing over 99% of all polymer notes in global circulation since their introduction in Australia in the early 1990s. Its Guardian® substrate is used in 24 countries and provides significant benefits and cost savings to central banks.
In its Films division Innovia is a leading global developer and manufacturer of speciality labels and packaging for a range of technologically advanced industrial applications. It is the global market leader in pressure sensitive labels and tobacco overwrap. Its highly differentiated, proprietary manufacturing methods deliver enhanced product and operational performance for customers, providing a combination of enhanced security and brand integrity.
Background on CCL
CCL Industries employs more than 20,000 people operating 156 production facilities in 35 countries on 6 continents with corporate offices in Toronto, Canada and Framingham, Massachusetts. The company is organised in four reporting segments: CCL Label, Avery, Checkpoint and CCL Container. 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 and chemicals, consumer durable, electronic device and automotive markets. Extruded and laminated plastic tubes, folded instructional leaflets, precision decorated and 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 aluminium aerosol cans and bottles for consumer packaged goods customers in the United States and Mexico. Checkpoint is a leading manufacturer of technology-driven, loss prevention, inventory management and labelling solutions, including RF and RFID-based, to the retail and apparel industry.
Background on Smithfield Group
The Smithfield Group LLP buys, operationally improves and grows businesses headquartered in Europe and North America. Value is returned to Smithfield's investors when the businesses are sold. Smithfield's most recent acquisition was US headquartered Pure Power Technologies, which was acquired in 2016 from Navistar.
For more information, please visit www.thesmithfieldgroup.com
J.P. Morgan Cazenove acted as sole financial advisor for the sellers on the transaction.