TORONTO, CANADA: CCL Industries Inc (CCL) has entered into a definitive agreement to acquire Innovia Group of companies (Innovia) for approximately $1.13 billion.
Innovia, headquartered in Wigton, UK, is a leading global producer of speciality, high performance, multi-layer, surface engineered biaxially oriented polypropylene (BOPP) films for a label, packaging and security applications. Having facilities across the UK, Australia, Belgium and Mexico with 1200 employees and sales offices in 16 countries around the world.
The deal is expected to close by the end of the first quarter 2017.
For 2017, Innovia is expected to generate net revenue of approximately $570 million and estimated EBITDA of $155 million.
CCL is buying Innovia on a debt free and net of cash from a consortium of UK-based private equity investors managed by The Smithfield Group LLP.
“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,” said Geoffrey Martin, president and CEO of CCL.
“CCL's 2017 proforma annual sales are forecast to exceed $5.0 billion post close. The transaction will be financed from existing capacity in our revolving credit facility and a new US$ 450 million, two-year term loan provided by a syndicate of banks led by Bank of Montreal. At closing our expected proforma net debt to EBITDA leverage ratio is estimated at a conservative 2.5 times, with additional balance sheet liquidity of approximately $700 million,” added Martin.
Read More: CCL to acquire UK’s BOPP films producer for $1.13 billion
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