Canadian specialty packaging firm CCL Industries has purchased remaining 37.5% stake in its Chilean wine label venture Acrus-CCL for around $6.3m.
The company will change the trading name to CCL Label with immediate effect.
CCL president and CEO Geoffrey T Martin said that the existing management team will continue to operate the business reporting to CCL Industries South America vice President and managing director Carlos Marinetti.
Martin said: "Together with our partners, we enjoyed a successful start-up of our greenfield wine label operation in Santiago. Finally with the closure of this transaction we are now planning significant investments to expand our presence across the Andean region and into other end markets."
An estimated debt of $7.4m will be transferred to the company’s consolidated balance sheet after the acquisition.
Sales and EBITDA for 2016 operation were reported as $18.1m and $2.9m, respectively.
CCL Industries has consolidated its 62.5% interest on an equity accounting basis representing nearly $0.8m of net earnings.
In 2014, CCL Industries acquired 62.5% of the equity in the Chilean Venture after purchasing an additional 12.5% interest for $1.2m.
The packaging company converts pressure sensitive and extruded film materials for a range of decorative, instructional, functional and security applications in the consumer packaging, healthcare and chemicals, consumer electronic device and automotive sectors.
CCL operates 154 production facilities across 36 countries and manages more than 20,000 employees.
Also, the company sells extruded and laminated plastic tubes, folded instructional leaflets, precision decorated and die cut components, electronic displays, polymer bank note substrate and offers other complementary products and services to certain end-use markets.