CCL Industries Announces the Creation of A New Wine Label Joint Venture in Chile
CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B), a world leader in specialty packaging solutions for the consumer products and healthcare industries, announced today that it will make its first investment in Chile.
Acrus-CCL based in Santiago is a joint venture between CCL and a newly created Chilean investment holding company, which has two groups of shareholders: Mitchell Kendall and David Goodman, both veterans of the label industry as former principals of Cameo Crafts Graphic Industries; and Jose Mingo, Aldo Gonzalez and members of the Marinetti family, who have a long history in packaging and the wine and spirits market in Chile. CCL and its partner will each have a 50% interest in Acrus-CCL; Mr. Aldo Gonzalez has been appointed as General Manager.
The partners will initially invest approximately $10 million between them, financed by a combination of debt and equity, to create a state-of-the-art label production plant in Santiago dedicated to the wine industry. Chilean wine exports have more than doubled in less than a decade and are estimated to have reached 50 million cases in 2011. CCL's initial equity investment of $2 million will be matched by its joint venture partner. Acrus-CCL will eventually expand its presence in the wine and spirits market to other Spanish speaking countries in the Mercusor trading zone.
Mr. Aldo Gonzalez, General Manager Acrus-CCL, commented, "We are excited to bring new leading edge supply chain and label converting technologies to the very specific needs of Chilean wine exporters. We have a highly experienced local management team that knows the wine industry intimately, supported by the technologies and global leverage of the world's largest label company. I believe such a powerful combination will bring many benefits to our customers in Chile."
Geoffrey T. Martin, President and Chief Executive Officer concluded, "We have known and admired the principals in this new partnership for some years. This investment expands our presence in both the wine and spirits business and adds an important territory in the fast growing Latin American region. CCL's interests in the joint venture will be represented by Luis Jocionis, Vice President and Managing Director, CCL Label Brazil. We expect the company to commence trading this month and plan to reach profitability in 2013."
With headquarters in Toronto, Canada, CCL Industries now employs approximately 6,400 people and operates 69 production facilities globally located to meet the sourcing needs of large international customers. CCL Label is the world's largest converter of pressure sensitive and film materials for label applications and sells to leading global customers in the consumer packaging, healthcare, automotive and consumer durable markets. CCL Container and CCL Tube are leading producers of aluminum aerosol cans, bottles and extruded plastic tubes for consumer packaged goods customers in the United States, Canada and Mexico.
This press release contains forward-looking information and forward-looking statements, as defined under applicable securities laws, (hereinafter collectively referred to as "forward-looking statements") that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the anticipated income, profitability and expansion of the joint venture; and the Company's expectations regarding general business and economic conditions. Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the evolving global financial crisis and its impact on the world economy and capital markets; the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological change; changes in government regulations; risks associated with operating and product hazards; and CCL's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: global economic recovery and higher consumer spending; improved customer demand for the Company's products; continued historical growth trends, market growth in specific segments and entering into new segments; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum costs; the availability of cash and credit; fluctuations of currency exchange rates; the Company's continued relations with its customers; and general business and economic conditions. Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements.
Further details on key risks can be found in the MD&A section of CCL's 2011 Annual Report, particularly under Section 4: "Risks and Uncertainties". CCL's annual and quarterly reports can be found online at www.cclind.com and www.sedar.com or are available upon request. Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on CCL's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sale of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.
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