Pacman-CCL, a joint venture between CCL Industries and United Arab Emirates (UAE)-based Albwardy Investment, has entered a binding agreement to purchase a 70% stake in India’s Super Label.
Subject to customary procedures, the $3.75m deal is scheduled to be concluded by later this month.
Pacman-CCL will also use the investment to reduce debt and provide funding for the future expansion of Super Label, which will be managed by its founder Bharat Mehta following the completion of the new deal
Super Label provides pressure-sensitive labels for various consumer and healthcare products in India.
With the signing of the new deal, the company has become a part of Pacman-CCL trading under the CCL corporate identity system.
CCL Industries president and CEO Geoffrey Martin said: “Over the last decade we looked many times at entering India through acquiring a local business.
“Super Label is one of the best managed we have seen, I believe this is the best way forward given Pacman-CCL's proximity to the region.
“Our Indian Checkpoint subsidiaries remain separate to this venture, entirely under CCL control, focusing exclusively on retail and apparel markets.”
Employing 20,000 people, CCL currently operates 156 production facilities in 35 countries worldwide.
CCL Label converts pressure-sensitive and extruded film materials for decorative, instructional and functional applications for customers operating in the consumer packaging, healthcare and chemical markets.
Last month, the company announced its plan to acquire Innovia Group, which provides biaxially oriented polypropylene film (BOPP) films for label, packaging and security applications, for around $1.13bn.