CCL Industries, a world leader in specialty packaging solutions for the consumer products and healthcare industries, announced that it has signed a heads of agreement to acquire through the purchase of shares John Watson & Company, a privately owned label converter located in Glasgow, Scotland, with estimated sales of approximately £12m in the current year.
The planned acquisition produces labels for leading distillers of Scotch whisky and other spirits and will complement the global network of CCL Label Wine & Spirits operations in Australia, Asia, Latin America, Russia, South Africa, the UK and the United States.
The transaction is subject to contract, with terms based on the financial performance of John Watson & Company for the calendar year of 2013. Specific details will be disclosed following completion of the planned transaction in early 2014.
In the interim period the two companies will cooperate to serve common customers and leverage combined supplier relationships. This coordination will be led by Guenther Birkner, President, Food & Beverage Worldwide, together with the management teams of John Watson & Company and CCL Label Wine & Spirits business units.
John Watson, principal shareholder of the company, will remain associated with the business in an advisory capacity. Robert McLachlan and Allan McDonnell will enter into continuing employment agreements as joint managing directors. The acquired company will, on completion of the transaction, change its trading name to CCL Label and become a part of the global Wine & Spirits network.
Geoffrey Martin, President and CEO of CCL Industries, said: "The Wine & Spirits sector continues to be attractive for us as we have built our business by a series of acquisitions, joint ventures and Greenfield investments around the world. Guenther and his key people have held John Watson & Company in high regard for a long time and believe the great team that John assembled will allow us to get closer to important global customers located in Scotland. We also plan to support the planned acquisition with further investment in the operation in Glasgow."
John Watson, chairman of John Watson & Company, said: "We are delighted to have concluded heads of agreement with CCL and look forward to the future with confidence and enthusiasm. We believe CCL will be a very good home for John Watson & Company and that it will take the business to the next level.
"This has been a personal crusade in developing Watson’s over 46 years and I would like to thank all my dedicated directors, staff and others associated with this business for their unswerving loyalty and support."
With headquarters in Toronto, Canada, CCL Industries now employs approximately 6,600 people in 74 plants globally located to meet the sourcing needs of large international customers. CCL Label is the world’s largest converter of pressure sensitive and film materials for label applications and sells to leading global customers in the consumer packaging, healthcare, automotive and consumer durable segments.
CCL Container and CCL Tube are leading producers of aluminium aerosol cans, bottles and extruded plastic tubes for the consumer products industry in North America.