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CCL Industries Announces Planned German Healthcare Acquisition for CCL Label

CCL Industries Inc. (TSX:CCL.A) (TSX:CCL.B) ("CCL"), a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers, announced today that it has signed a binding agreement to acquire Eukerdruck GmbH & Co. KG & Pharma Druck CDM GmbH ("Euker"), privately held companies with common shareholders owning plants in Marburg and Dresden, Germany. Euker is a leading supplier of folded leaflets, specialty booklets and pressure sensitive labels to pharmaceutical companies in German-speaking Europe with approximately 300 employees and estimated adjusted EBITDA of $5.6 million on sales of $40 million for the year ending June 30, 2016. The purchase price consideration, including debt assumed, is approximately $31 million, subject to customary closing adjustments, including the acquisition of real estate property used by the business but held separately by the shareholders. Closing is anticipated by third quarter 2016 subject to German regulatory approval.

Guenther Birkner, President Food & Beverage/Healthcare & Specialty Worldwide, and CCL Label's top executive in Europe, commented, "We are delighted to welcome Robert, Dietrich and Christian Mägerlein to CCL where they will each play prominent roles in our organization. It's a strategically important development for our European Healthcare business to have a leading presence in German-speaking countries in addition to our existing strength in the UK, Ireland, France, Italy, Benelux and Scandinavia. The new business will change its trading identity to CCL Label immediately post-closing."

Geoffrey T. Martin, President & CEO of CCL Industries, concluded, "This is another excellent tuck-in acquisition for CCL Label in a very important sector and geography as we continue to build out our different end market global franchises."