The Chilean business, which produces wine, spirits and beverage labels, based in Santiago, will change its trading name to CCL Label with immediate effect.
"Together with our partners, we enjoyed a successful start-up of our greenfield wine label operation in Santiago,” said Geoffrey Martin, president/CEO, CCL.
“The current management team will continue to run the business reporting to Luis Jocionis, VP and MD, CCL Industries South America, and Carlos Marinetti, our principal partner in the start-up, will remain a director on the local Board of our Chilean entity.
“With the closure of this transaction we are now planning significant investments to expand our presence across the Andean region and into other end markets."
CCL employs approximately 20,000 people operating 154 production facilities across 36 countries with corporate offices in Toronto, Canada, and Framingham, Massachusetts.
It manufactures pressure sensitive and extruded film materials for a range of decorative and functional food and beverage packaging and in 2016 generated double-digit organic sales growth. (2016 reported sales and EBITDA for the operation were $18.1m and $2.9m respectively).
“Gains were across the board in all product lines and geographic regions. The only dark cloud was at our wine acquisition in Germany, which had a tough year. Wine & Spirits elsewhere delivered improved results especially in the Americas and Australia,” said Martin.
Korea & Switzerland
“In the beer, juice, water and carbonated soft drinks markets, strong growth continued globally for our patented, clear pressure sensitive, wash-off labels for glass and PET bottles using our proprietary adhesive coating technology.
“The Sleeve business posted double-digit gains in sales and profits, especially in North America and Emerging Markets.
“Results in Europe were also good where we invested significantly, expanding operations in Austria and the UK.
"The Closure Label business delivered sizable sales and profit gains as these applications gained traction with global customers. We invested heavily in the space to add capacity, building a new plant in Korea and buying land to do the same in Switzerland in 2017.”