TORONTO, ON--(Marketwired - February 09, 2015) - CCL Industries Inc. ("CCL") (TSX: CCL.A) (TSX: CCL.B), a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers, announced today that it will invest $30 million in its CCL Design operations in the United States and Mexico that focus on the Automotive, Electronics and Domestic Appliance markets.
This investment includes the acquisition of the assets of INT America LLC ("INT"), a private company based in Detroit, Michigan that has built a market for metal tread plates for domestic automotive OEMs using third party component suppliers in Asia. The new business will trade as an integral part of CCL Design North America with immediate effect. INT posted 2014 sales of $15 million; CCL purchased the assets of the business for $4.75 million in cash effective February 6, 2015. CCL already acquired INT's associate company in Germany in 2013.
Additionally CCL will build a green field plant in Guanajuato, Mexico and significantly expand its existing production facilities in the United States in Clinton, South Carolina and Strongsville, Ohio. The Company will also invest in new converting technologies to create additional capacity for functional labels, die cut films, decorative laminates and metal tread plates in the United States and Mexico. Capital expenditures in the Mexican facility, plant expansions in the United States and equipment purchases will be made over the course of the next 18 months.
Geoffrey T. Martin, President & CEO of CCL Industries Inc., commented, "Automotive and other durable goods end-use markets have been beneficiaries of the recent economic recovery in the United States. These investments allow us to offer a common product portfolio to OEM customers globally as CCL Design continues to represent an important new market sector for our Company. The metal tread plates we will manufacture in North America match the programs we have had in place in Germany for some years. We expect CCL Design to generate a 20% pre-tax incremental annual return on the additional capital by 2017."
CCL Industries now employs approximately 10,250 people and operates 99 production facilities in 28 countries on 5 continents with corporate offices in Toronto, Canada, and Framingham, Massachusetts. CCL Label is the world's largest converter of pressure sensitive and extruded film materials for a wide range of decorative, instructional and functional applications for large global customers in the consumer packaging, healthcare, automotive and consumer durables markets. Extruded & laminated plastic tubes, folded instructional leaflets, precision printed & die cut metal components with LED displays and other complementary products and services are sold in parallel to specific end-use markets. Avery is the world's largest supplier of labels, specialty converted media and software solutions to enable short run digital printing in businesses and homes alongside complementary office products sold through distributors and mass market retailers. CCL Container is a leading producer of impact extruded aluminum aerosol cans and bottles for consumer packaged goods customers in the United States, Canada and Mexico.
This press release contains forward-looking information and forward-looking statements, as defined under applicable securities laws, (hereinafter collectively referred to as "forward-looking statements") that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the introduction of "INT" and "CCL Design" products globally; investment of $30 million expansion of U.S. plants, building a new Mexican operation, integration of INT, new converting technologies, how long this will take CCL, expected return by 2017. Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the evolving global financial crisis and its impact on the world economy and capital markets; the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological change; changes in government regulations; risks associated with operating and product hazards; and CCL's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: global economic recovery and higher consumer spending; improved customer demand for the Company's products; continued historical growth trends, market growth in specific segments and entering into new segments; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum costs; the availability of cash and credit; fluctuations of currency exchange rates; the Company's continued relations with its customers; and general business and economic conditions.. Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found in the 2013 MD&A, particularly under Section 4: "Risks and Uncertainties." CCL's annual and quarterly reports can be found online at www.cclind.com and www.sedar.com or are available upon request. Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on CCL's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.
For more details on CCL, visit our website www.cclind.com
For more details on CCL Design, visit www.ccl-design.com