 "Plastic film image via Shutterstock.")
Canadian specialty labels maker CCL Industries Inc has acquired Innovia Group, the UK-based manufacturer of specialty BOPP (biaxially oriented polypropylene) films and polymer banknote substrate, from the Smithfield Group, the managing shareholder of Innovia, for CAN$ 1.13 billion ($ 845 million). The acquisition will propel CCL into a leadership position in the disruptive, fast growing polymer banknote market while further consolidating its presence in the materials science arena with propriety BOPP films technology for the label, packaging and security sectors.
Innovia is a leading global producer of specialty, high performance, multi-layer, surface engineered BOPP films for label, packaging and security applications. The business has film extrusion, coating and metallising facilities across the UK, Belgium and Australia as well as high security, specialised polymer banknote operations in the UK, Australia and Mexico with 1200 employees and sales offices in 16 countries around the world. For 2017, Innovia is expected to generate net revenue of approximately $ 570 million and estimated EBITDA of $ 155 million.
The deal with CCL follows a highly successful period for Innovia during which it has substantially enhanced the capabilities and performance of both its film and banknote businesses. Increasing its strategic focus on high value add and differentiated films with world leading technology, it divested its legacy cellophane business earlier this year while making significant growth investments over the last 3 years, including a state of the art new facility to produce polymer banknote substrate in Cumbria.
CCL, with a market value in excess of CAN $8 billion, employs more than 20,000 people and operates from 156 production facilities across 35 countries on 6 continents. CCL has a complementary presence in the markets in which Innovia operates, with capabilities in security printing, polymer extrusion and surface engineering that are deployed across all business segments. Innovia’s pre-eminent R&D and high technology capabilities provide a platform for CCL to grow and further enhance its offer in these markets.
Mark Robertshaw, chief executive of Innovia Group, said, “CCL will be an excellent long term owner for the employees and customers of Innovia. CCL recognises and values Innovia’s world leading technology, R&D and differentiation in films and security and sees a high degree of complementarity with CCL’s own capabilities and markets to establish new growth opportunities for their business.”
