Canadian specialty packaging solutions giant CCL to acquire Checkpoint Systems.
http://www.bignewsnetwork.com/news/241837831/canadian-specialty-packaging-solutions-giant-ccl-to-acquire-checkpoint-systems
Canadian specialty packaging solutions giant CCL to acquire Checkpoint Systems.
The US$10.15 per share in cash deal represents a premium of approximately 29 percent to the closing price on Tuesday, the last trading day prior to the signing of the definitive merger agreement, the Canadian company announced Wednesday. The Toronto-based CCL said it would fund the deal, expected to close in mid-2016, with its existing $1.2-billion revolving syndicated credit facility. The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in mid-2016. The deal marks the largest in a string of acquisitions by CCL aimed at expanding the Canadian packaging and label company’s international footprint. On Tuesday, CCL had announced the purchase of a private electronics-focused label company in Singapore for about C$39 million ($29 million). Earlier in January, CCL also announced two small acquisitions, including a label-systems supplier with operations in the US and China, and a label maker in Ireland. “We have admired Checkpoint for many years as they built a unique, leading global position providing technology-driven label solutions to the retail and apparel industry,” said Geoffrey T. Martin, President and Chief Executive Officer of CCL, in a statement. Checkpoint is a leading manufacturer of technology-driven, loss prevention, inventory management and labeling solutions, including RF and RFID-based, to the retail and apparel industry. The business has operations in 29 countries including 46 go-to-market units and 21 manufacturing facilities. For the last twelve months ended September 27, 2015, Checkpoint generated net revenue of approximately $820 million and adjusted EBITDA (before synergies) of $83 million, resulting in an adjusted EBITDA margin of 10.2 percent. Checkpoint is scheduled to release annual results on Thursday and has guided for 2015 revenue of between $500 million and $600 million. CCL has annual revenue of more than C$3 billion. The transaction will be subject to Checkpoint shareholder approval at a special shareholder meeting expected to take place in the second quarter of 2016, the company stated.
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