Packaging solutions provider CCL Industries has signed an agreement to acquire Scotland-based label converter John Watson & Company, for an undisclosed value.

According to CCL, the acquisition of the company, which produces labels for distillers of Scotch whisky and other spirits, will complement the global network of CCL Label Wine & Spirits operations in Australia, Asia, Latin America, Russia, South Africa, the UK and the US.

The deal, which is expected to close in early 2014, is subject to contract terms based on the financial performance of John Watson for calendar year 2013.

Both the companies will cooperate to serve common customers and tap combined supplier relationships in the interim period.

Upon completion of the transaction, the trading name of the acquired company, which will become a part of the global wine & spirits network, will be changed to CCL Label.

CCL Industries president and CEO Geoffrey Martin said for the company, which has built its business by a string of acquisitions, joint ventures and greenfield investments around the world, the wine & spirits sector continues to be attractive.

"We also plan to support the planned acquisition with further investment in the operation in Glasgow," Martin said.

John Watson & Company chairman John Watson, commenting on the deal, said, "We are delighted to have concluded heads of agreement with CCL and look forward to the future with confidence and enthusiasm."

Canada-based CCL Industries has 74 plants globally, to meet the sourcing needs of international customers.