CCL Strategic Repositioning Results in Asset Divestment

Published: September 04, 2003, By PRESS RELEASE

TORONTO, ON, CANADA—CCL Industries earlier this week announced the sale of four non-core business units in its container division. The businesses that have been sold include CCL's aluminum tube plant, Harrisburg, VA; the laminate tube facility, Swedesboro, NJ; the plastic jar plant, Plattsburgh, NY; and the San Jose, Costa Rican, facility that manufactures a variety of containers for the Central American market.

"We are very excited about completing this transaction that finalizes our major strategic repositioning of the businesses," reports Donald Lang, president and CEO of CCL. "[We're] now focused on three great business franchises with the resources to support further growth and profitability improvement through capital investment and by acquisition as seen in our July 22, 2003, announcement regarding the acquisition of Avery Dennison's European label converting business. We anticipate the Avery Dennison transaction will be completed by the end of September."

Lang adds, "The net earnings impact of the label converting business acquisition, and of the divestiture of these non-core assests, will be positive to CCL."

CCL says the purchaser of its sold business units is a private Ontario limited partnership, 50% owned by Douglas Brent, Hollis Brent, and Gary Ullman, and 50% owned by CCL. It will operate under the name of IntraPac, and Ullman will head the entity as the president and CEO.

CCL is a manufacturer of packaging and labeling solutions for the consumer products industry. Learn more from CCL at cclind.com.