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Corporate
Bag on valve business sold
CCL Industries announced today that it has signed a binding agreement to divest the assets of its ABS ‘Bag-on-Valve’ business to AptarGroup, Inc. The business is a product line of CCL Container, sold in conjunction with aluminum aerosol containers for applications requiring separation between the propellant and the contents. CCL Container will retain the aluminum aerosol can business sold to customers using the ‘Bag-on-Valve’ system and AptarGroup will separately market these specialized dispensing systems to the customers.The ABS product line, located in Penetanguishene, Ontario, had revenues of approximately $9 million in the calendar year 2007 with an estimated break-even contribution to CCL Container’s reported Operating Income. The purchase price for the business is approximately $9.4 million, which will be paid in cash. There will be a short-term transition period during which the business will be relocated to an AptarGroup subsidiary in Illinois. The Company anticipates a small gain on disposal after incurring restructuring costs associated with the transaction. The CCL Container facility in Penetanguishene, Ontario will continue to produce high quality aluminum containers for the food and beverage and personal care markets in conjunction with existing operations in the U.S. and Mexico. CCL Container’s total sales for 2007 were $182 million.
Donald Lang, Vice Chairman and CEO of CCL Industries commented, “CCL Container can now focus on its core business as North America’s leading producer of impact extruded aluminum aerosols and bottles.”
Geoffrey Martin, President and COO of CCL Industries said, “We are pleased to have been able to reach an agreement with AptarGroup that allows each company to focus on their relative strengths in the market for aerosols requiring these specialized delivery systems.”
