Canadian label and packaging maker CCL Industries has signed an agreement to acquire Innovia Group, a UK-based manufacturer of specialty co-extruded, bi-axially oriented polypropylene (BOPP) films for C$1.13bn ($842m).
Innovia Group, a supplier of BOPP films used for labels, packaging and security applications, will be purchased from a consortium of UK based private equity investors managed by Smithfield Group.
Subject to regulatory and change of control approvals as well as customary completion procedures, the deal is scheduled to be completed by the end of the first quarter 2017.
CCL president and CEO Geoffrey Martin said: “This transaction is another transformative acquisition for CCL, propelling the Company to world leadership in the disruptive, fast growing polymer banknote market while strengthening our depth in the materials science arena with proprietary BOPP films technology for the label, packaging and security sectors.”
CCL expects Innovia’s unique polymer banknotes capability to significantly expand its security products, customers, markets and technologies.
Martin added: “We expect to find significant operational, customer and product innovation growth opportunities between Innovia and our end use facing businesses at CCL Label, CCL Design, Checkpoint and Avery.”
Employing 1200 people, Innovia is engaged in manufacturing high performance, multi-layer, surface engineered BOPP films.
The firm operates film extrusion, coating and metalizing facilities across the UK, Belgium and Australia as well as high security, specialized polymer banknote operations in the UK, Australia and Mexico.
