A syndicate of banks has committed to provide debt financing to close the transaction.
The two businesses had combined revenues of approximately $910m with an estimated adjusted EBITDA of $110m in the calendar year of 2012. The transaction requires regulatory approval but subject to that is expected to close by mid-2013.
Geoffrey Martin, president and CEO of CCL Industries, said: “This acquisition has the potential to transform our company at many levels. We are acquiring the Avery brand as part of the transaction to build on the franchise established for many decades for labels and other printable media that consumers and businesses use in digital computer printers around the world.
“We expect the transaction to be accretive on an earnings per share basis in 2014 and beyond as the valuation falls well within the established financial parameters for CCL’s acquisitions in the label industry over the last decade.”
Source: CCL Industries
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