CCL Industries Inc. (“CCL”) has signed a binding agreement to acquire Polish BOPP film producer Flexpol Sp. Z.o.o. for an estimated $22 million on a debt/cash free basis. Sales in 2019 were approximately $70 million, entirely focused on flexible packaging customers, with an adjusted $3.7 million EBITDA.
Closing is expected during the 1Q 2020 following regulatory approvals; the new business will then trade as Innovia Poland.
Geoffrey T. Martin, President and Chief Executive Officer of CCL, said, “This operation brings us new capability to deliver label films in Europe using the same technology we have in place at Innovia Mexico for the Americas complementing existing product offerings from Innovia’s UK operations. The plant is in very good condition with state-of-the-art equipment in a low cost location.
We expect to significantly improve profitability by 2021 as product mix changes. The acquired operation will report directly to Guenther Birkner who heads Innovia globally alongside CCL’s Food & Beverage and Healthcare & Specialty label businesses.”
