Canadian packaging solutions provider CCL Industries (CCL) has agreed to acquire Treofan Americas and Trespaphan Mexico from their parent firm M&C for approximately $198.93 million.
CCL will acquire the Treofan Americas businesses located in the US, Latin America and Canada.
Upon completion of the deal, CCL’s acquired business will operate under a new brand name called Innovia, as Treofan’s name rights will be retained by M&C.
Treofan Americas produces biaxially oriented polypropylene (BOPP) films for speciality applications in consumer packaging and label markets. The company plans to install a 10m-wide BOPP extrusion later this year in order expand the production capacity of its Mexico facility by 30,000t.
CCL Industries president and CEO Geoffrey Martin said: “The proposed acquisition gives Innovia a solid strategic footprint for BOPP films in both North America and Europe with highly complementary technologies and products.
“The business will be combined with Innovia in the Americas under a common brand and the leadership of Guenther Birkner, who heads our label interests globally in the Food & Beverage and Healthcare & Specialty markets, as well as this important new strategic initiative in the materials science arena.”
Completion of the transaction is subject to regulatory approvals and customary closing conditions and is expected to take place during the second quarter of this year.
M&C will continue operating in the European markets through Treofan Germany and Treofan Italy, which are not part of the transaction.
CCL has agreed to pay for all cash capital expenditures incurred by M&C for this project at closing as an increase in the purchase price.
The total capital expenditure on the project is estimated at $50.5 million with approximately 50% cash outlay incurred by the anticipated closing date.