The Smithfield Group, the managing shareholder of Innovia Group, has agreed to an offer from CCL Industries to acquire Innovia Group for CAN $1.13 billion.
Innovia is a leader in specialty BOPP films and polymer banknote substrate, and CCL is a global specialty industrial business.
The transaction follows a period whereby Innovia enhanced the capabilities and performance of both its film and banknote businesses.
Increasing its strategic focus on high value add and differentiated films with world leading technology, it divested its legacy cellophane business earlier this year while making significant growth investments over the last three years, including a new facility to produce polymer banknote substrate in Cumbria.
CCL is the world’s largest specialty label business and is publicly quoted on the Toronto Stock Exchange with a market value in excess of CAN $8 billion.
It employs more than 20,000 people and operates from 156 production facilities across 35 countries on six continents.
CCL has a complementary presence in the markets in which Innovia operates, with capabilities in security printing, polymer extrusion and surface engineering that are deployed across all business segments.
Innovia’s pre-eminent R&D and high technology capabilities provide a platform for CCL to grow and further enhance its offer in these markets.
The transaction is subject to regulatory and other change of control approvals and customary completion procedures with closing expected by the end of the first quarter of 2017.
