The Smithfield Group, the managing shareholder of Innovia Group, manufacturer of specialty BOPP films and polymer banknote substrate, has agreed an offer from CCL Industries, to acquire Innovia Group for €810 million.
The transaction follows a successful period for Innovia; it divested its legacy cellophane business in 2016, while making significant growth investments over the last three years, including a new facility to produce polymer banknote substrate in Cumbria.
Specialty label business CCL 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 R&D and technology capabilities provide a platform for CCL to grow and further enhance its offer in these markets.
‘CCL will be an excellent long term owner for the employees and customers of Innovia,’ said Mark Robertshaw, chief executive of Innovia Group, commenting that CCL ‘sees a high degree of complementarity with [its] own capabilities and markets to establish new growth opportunities for their business.’
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, 2017.
