CCL Industries Buys Innovia Group
The Smithfield Group, the managing shareholder of Innovia Group (“Innovia”), the global leader in specialty BOPP films and polymer banknote substrate, have agreed an offer from CCL Industries Inc., a global specialty industrial business, to acquire Innovia Group for CAD 1.13 billion (EUR 810 million). The transaction is subject to regulatory and change of control approvals as well as customary completion procedures with closing expected by the end of the first quarter, 2017.
CCL, with headquarters in Toronto, Canada, is the world’s largest specialty label business, employs more than 20,000 people and operates from 156 production facilities across 35 countries on 6 continents. Geoffrey T. Martin, President and Chief Executive Officer of CCL, 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."
Innovia, headquartered in Wigton in the UK, 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 metallizing facilities across the U.K., Belgium and Australia as well as high security, specialized polymer banknote operations in the U.K., 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 CAD 570 million and estimated EBITDA of CAD 155 million.
The transaction 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 three years, including a state of the art new facility to produce polymer banknote substrate in Cumbria, UK.
Innovia Security,Innovia's polymer banknote division, has produced approx. 50 billion polymer banknotes for central banks around the world, representing over 99% of all polymer notes in global circulation since their introduction in Australia in the early 1990s. Its Guardian substrate is used in 24 countries and provides significant benefits and cost savings to central banks.
Innovia Films Ltd.
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