CCL to acquire Polish BOPP films operation
CCL Industries has signed a binding agreement to acquire Polish BOPP film producer Flexpol for an estimated 22 million USD on a debt/cash free basis with closing expected in the first quarter of 2020.
One of the largest Polish polypropylene products manufacturers reached approximately 70 million USD in 2019 focusing entirely on flexible packaging customers, with an adjusted 3.7 million USD EBITDA. The deal is expected to close in the first quarter of 2020, following regulatory approvals, after which the new business will trade as Innovia Poland.
‘This operation brings us new capability to deliver label films in Europe using the same technology we have in place at Innovia Mexico for the Americas complementing existing product offerings from Innovia’s UK operations,’ said Geoffrey Martin, president and chief executive officer of CCL. ‘The plant is in very good condition with state-of-the-art equipment in a low-cost location. We expect to significantly improve profitability by 2021 as product mix changes.’
The acquired operation will report directly to Guenther Birkner, who heads Innovia globally alongside CCL’s Food & Beverage and Healthcare & Specialty label businesses.