CCL Industries Signs Agreement to Acquire Spirits Label Company in Scotland
November 20 2012 - 11:08AM
Marketwired
CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B), a world leader in
specialty packaging solutions for the consumer products and
healthcare industries, announced today that it has signed a heads
of agreement to acquire through the purchase of shares John Watson
& Co. Ltd., a privately owned label converter located in
Glasgow, Scotland with estimated sales of approximately U.K. pounds
12 million in the current year. The planned acquisition produces
labels for leading distillers of Scotch whisky and other spirits
and will complement the global network of CCL Label Wine &
Spirits operations in Australia, Asia, Latin America, Russia, South
Africa, the UK and the United States. The transaction is subject to
contract, with terms based on the financial performance of John
Watson & Co. for calendar year 2013. Specific details will be
disclosed following completion of the planned transaction in early
2014.
In the interim period the two companies will cooperate to serve
common customers and leverage combined supplier relationships. This
coordination will be led by Guenther Birkner, President, Food &
Beverage Worldwide together with the management teams of John
Watson & Co. and CCL Label Wine & Spirits business
units.
John Watson, whose family have owned the shares of the company
since inception, will remain associated with the business in an
advisory capacity. Robert McLachlan and Allan McDonnell will enter
into continuing employment agreements as joint Managing Directors.
The acquired company will, on completion of the transaction, change
its trading name to CCL Label and become a part of the global Wine
& Spirits network.
Geoffrey Martin, President and CEO of CCL Industries, said, "The
Wine & Spirits sector continues to be attractive for us as we
have built our business by a series of acquisitions, joint ventures
and greenfield investments around the world. Guenther and his key
people have held John Watson & Co. in high regard for a long
time and believe the great team that John assembled will allow us
to get closer to important global customers located in Scotland. We
also plan to support the planned acquisition with further
investment in the operation in Glasgow."
John Watson, Chairman of John Watson & Co. said, "We are
delighted to have concluded heads of agreement with CCL and look
forward to the future with confidence and enthusiasm. We believe
CCL will be a very good home for John Watson & Co. and that it
will take the business to the next level. This has been a personal
crusade in developing Watson's over 46 years and I would like to
thank all my dedicated Directors, staff and others associated with
this business for their unswerving loyalty and support."
With headquarters in Toronto, Canada, CCL Industries now employs
approximately 6,600 people in 74 plants globally located to meet
the sourcing needs of large international customers. CCL Label is
the world's largest converter of pressure sensitive and film
materials for label applications and sells to leading global
customers in the consumer packaging, healthcare, automotive and
consumer durable segments. CCL Container and CCL Tube are leading
producers of aluminum aerosol cans, bottles and extruded plastic
tubes for the consumer products industry in North America.
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 anticipated completion and success of the
acquisition; and the Company's expectations regarding general
business and economic conditions. 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 MD&A section of CCL's 2011 Annual Report,
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.
Contacts: CCL Industries Inc. Sean Washchuk Senior Vice
President and Chief Financial Officer 416-756-8526
www.cclind.com
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