CCL acquires European film extrusion operation

The new business unit will trade as Advanced Performance Films and will be an integral part of the CCL Label global Food & Beverage business, headed by Guenther Birkner.

CCL has paid around US$9 million in cash and assumed debt for the assets of Advanced Packaging Films, with the transaction expected to close on October 31.

Birkner, president of the CCL Label global Food & Beverage business, said: ‘This new capability allows us to design proprietary, specialty films for new sleeve and pressure-sensitive label applications while improving our supply chain performance for part of today's demand.

‘It is an important strategic step as we seek to accelerate growth with global brand owners in the premium segment of this market. We remain the world's largest trade buyer of heat shrinkable films for label applications from our valued supply partners.’

The acquisition of film extrusion assets is the latest step on CCL’s recent acquisition trail, which has included Avery Dennison's label converting business.

Geoffrey T. Martin, president and chief executive officer of CCL Industries, said: ‘Over time we expect to develop more capabilities across the company in the materials science field as we seek to innovate new ideas for customers.

‘Bolt on acquisitions like this could become an important part of that strategy.’