CCL Industries Inc. ("CCL") has entered into a definitive agreement to acquire the Innovia Group of companies for approximately $1.13 billion, debt free and net of cash from a consortium of U.K. based private equity investors managed by The Smithfield Group LLP. 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 1Q 2017.
Geoffrey T. Martin, President and CEO of CCL, said: "CCL's 2017 pro-forma annual sales are forecast to exceed $5 billion post close. The transaction will be financed from existing capacity in our revolving credit facility and a new $450 million, two-year term loan provided by a syndicate of banks led by Bank of Montreal. At closing our expected pro-forma net debt to EBITDA leverage ratio is estimated at a conservative 2.5 times, with additional balance sheet liquidity of approximately $700 million."
Innovia, headquartered in Wigton in the U.K., is a leading global producer of specialty, high performance, multi-layer, surface engineered BOPP films for label, packaging and security applications.
CCL Industries Inc. is a world leader in specialty label, security and packaging solutions.
