CCL to Acquire Sancoa and TubeDec

 

TORONTO, ON, CANADA | CCL Industries, a provider of specialty label and packaging solutions, has signed a binding agreement to acquire Sancoa, Lumberton, NJ, and TubeDec, Moorestown, NJ, privately owned companies with common shareholders supplying labels and plastic tubes to home and personal care customers in North America from three plants located in New Jersey and one in Ohio. The agreed purchase price is US$71 million, including the settlement of financial debt. Closing is scheduled during the first quarter of 2014 subject to customary completion conditions.

The new acquisition will trade as part of CCL Label's global Home & Personal Care business unit headed by Ben Rubino, president. Sancoa & TubeDec's combined sales in 2013 were US$82.5 million with an adjusted EBITDA of approximately US$10.1 million.

Geoffrey T. Martin, president and CEO of CCL Industries, says, "Joe Sanski, the principal shareholder of Sancoa & TubeDec, built one of the most respected companies in the world label industry. Over three decades he pioneered numerous innovative label and tube decorating technologies that are globally recognized by customers, suppliers, and peers. We are very pleased Joe chose us as a legacy home for the business that he founded and welcome both him and his management team [to] CCL…."

Martin concludes, "We expect to unlock many financial and operational synergies which we will announce in more detail at the closing of the transaction later this quarter."

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