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 acquired the assets of the pharmaceutical division of Graphitype Printing Services, a privately owned printing company located near Sydney, Australia, for $7m paid in cash.
The acquired business produces labels and patient instructional leaflets for leading pharmaceutical customers in Australia and will complement the existing CCL Label Healthcare operation in Melbourne.
Graphitype’s Pharmaceutical Division sales were $7.3m for the twelve-month period ending June 30, 2012, with EBITDA of approximately $2.5m. Dave and Kath Morris, the founders of Graphitype Printing Services, will continue to operate their commercial printing business as an independent company.
Steve Morris, the business leader of the Pharmaceutical Division, has signed an employment agreement as part of the transaction and will join the Healthcare and Specialty group of CCL Label North America and Australia, led by Jim Sellors, group vice president. The acquired business will immediately change its trading name to CCL Label.
Geoffrey Martin, President and CEO of CCL Industries, said: "The healthcare sector continues to be attractive for us and we have been very successful with similar acquisitions in this product space in the recent past.
"The excellent facility in Sydney and the great team assembled by the Morris family while building the business will strengthen our position in Australia with sites now located in both of the key pharmaceutical manufacturing centres in the country."
With headquarters in Toronto, Canada, CCL Industries now employs approximately 6,400 people and operates 72 production facilities 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 markets.
CCL Container and CCL Tube are leading producers of aluminum aerosol cans, bottles and extruded plastic tubes for consumer packaged goods customers in the United States, Canada and Mexico.