Trade Resources Industry Views CCL Industries to Acquire Germany's Pressure Sensitive Labels Supplier Eukerdruck

CCL Industries to Acquire Germany's Pressure Sensitive Labels Supplier Eukerdruck

Specialty label and packaging solutions provider CCL Industries has agreed to acquire privately held companies Eukerdruck and Pharma Druck CDM (Euker) for approximately $31m including its debt.

The two companies have common shareholders owning plants in Marburg and Dresden, Germany.

With approximately 300 employees, Euker is engaged in supplying folded leaflets, specialty booklets and pressure sensitive labels to pharmaceutical companies.

Euker's adjusted EBITDA is estimated at $5.6m on sales of $40m for the year ending 30 June 2016.

CCL Industries CEO and president Geoffrey Martin said: "This is another excellent tuck-in acquisition for CCL Label in a very important sector and geography as we continue to build out our different end market global franchises."

CCL Industries said that the purchase price is subject to customary closing adjustments, including the acquisition of real estate property used by the business but held separately by the shareholders.

Subject to German regulatory approval, the deal is planned to be completed by third quarter 2016.

CCL Label Europe top executive and Food & Beverage/Healthcare & Specialty Worldwide president Guenther Birkner said: "We are delighted to welcome Robert, Dietrich and Christian M?gerlein to CCL where they will each play prominent roles in our organization.

"It's a strategically important development for our European Healthcare business to have a leading presence in German-speaking countries in addition to our existing strength in the UK, Ireland, France, Italy, Benelux and Scandinavia."

Upon completion of the deal, the new business will change its trading identity to CCL Label.

In March, CCL Industries has acquired the assets of Brazil-based privately owned Powerpress Rotulos & Etiquetas Adesivas (Powerpress), producer of expanded content labels for agricultural chemical and pharmaceutical customers.

Source: http://pharmaproducts.packaging-business-review.com/news/ccl-industries-to-acquire-germanys-pressure-sensitive-labels-supplier-eukerdruck-160516-4893778
Contribute Copyright Policy