Canada-based specialty packaging firm CCL Industries has completed the acquisition of Treofan America and and Trespaphan Mexico Holdings from their parent firm M&C for around $255m.
Image: CCL Industries has acquired Treofan Americas. Photo: courtesy of Cytonn Photography on Unsplash.
The acquired businesses represent the Treofan Americas business in the US, Latin America and Canada.
Treofan Americas operations in Mexico and the US will now trade under the Innovia Films name, as the deal completed.
Treofan Americas is involved in the production of biaxially oriented polypropylene (BOPP) film.
Based in Zacapu of Mexico, the firm has production capacity of 60,000 tons for specialty applications in consumer packaging and label markets.
The firm distributes OPP films to the flexible packaging, labels, tobacco, and specialty film industries.
By the end of this year, Treofan Americas intends to install a new 10m-wide BOPP extrusion line in a bid to add 30,000 tons of capacity at its facility in Mexico.
CCL Industries also agreed to reimburse M&C for all cash capital expenditures incurred on the expansion project.
M&C’s European businesses Treofan Germany and Treofan Italy are not part of the deal.
In February this year, CCL reported record fourth quarter and annual financial results for 2017.
Sales for the fourth quarter of 2017 increased 16.6% to $1,234.5m compared to $1,058.4m for the fourth quarter of 2016.
Operating income for the fourth quarter of 2017 was $205.1m, an increase of 27.7% compared to $160.6m for the comparable quarter of 2016.
With around 20,000 employees, CCL Industries provides specialty label, security and packaging solutions to its customers.
The company, which manages 168 production facilities in 40 countries, has corporate offices in Toronto of Canada and Framingham of Massachusetts.
CCL produces pressure sensitive and specialty extruded film materials, which can be used in a range of decorative, instructional, functional and security applications for government institutions.
The film materials can also be used in the consumer packaging, healthcare and chemicals, consumer electronic device and automotive markets.
CCL markets extruded and laminated plastic tubes, aluminum aerosols and specialty bottles, folded instructional leaflets, precision decorated and die cut components and electronic displays.