CCL Industries in talks to acquire Treofan America

By Jenny Eagle

- Last updated on GMT

Treofan Americas. Photo: CCL.
Treofan Americas. Photo: CCL.
CCL Industries has signed a binding agreement to acquire Treofan America and Trespaphan Mexico Holdings from M&C for approximately $255m with the deal expected to close in Q2, 2018.

The entities to be acquired represent “Treofan Americas” in the US, Latin America and Canada and M&C would continue to control the equivalent European business through Treofan Germany and Treofan Italy, which are not including in the transaction.

BOPP films

complementary technology

The acquired Treofan entities will trade under the Innovia brand name with M&C retaining rights to the Treofan name.

CCL acquired Innovia​, which makes multi-layer BOPP films for label, packaging and security applications including dairy, confectionery, bakery and beverages, for approximately $1.13bn, last year.

The proposed acquisition (of Treofan America) gives Innovia a solid strategic footprint for BOPP films in North America and Europe with complementary technologies and products​,” said Geoffrey Martin, president/CEO, CCL Industries.

The business will be combined with Innovia in the Americas under a common brand and the leadership of Guenther Birkner who heads our label interests globally in the Food & Beverage and Healthcare & Specialty markets as well as this important new strategic initiative in the materials science arena​.”

During CCL Industries' Q4 2017 Earnings conference call last month, Sean Washchuk SVP/CFO, said its Food & Beverage business has been growing double digits for some time now particularly regarding ‘the phenomenon of brands preimmunizing’, using high end labels to make brands preimmunized for channels or targeted at high income consumers.

When they (manufacturers) choose to preimmunize a brand, they upscale it to sell into a particular channel or bring out a version of the brand that's targeted at a higher income consumer, to do that they have to spend more money on the package and that results in nicer labels at higher prices,​” he added.

Specialty applications

Treofan Americas produces biaxially oriented polypropylene (“BOPP”) film in Zacapu, Mexico, with a capacity of 60,000 tons for specialty applications in consumer packaging and label markets. 

Approximately 65% of sales are from the US sales office and distribution center in North Carolina, the remaining balance predominantly in Latin America. In 2017, Treofan Americas sales were approximately $212m with an estimated, adjusted EBITDA of $40m.


Treofan Americas will install a 10m-wide BOPP extrusion line in late 2018, adding 30,000 tons of capacity, requiring a significant facility expansion in Mexico.

The company agreed to reimburse M&C for all cash capital expenditures incurred on this project at closing as an increase to the purchase price. The total capital expenditure on the project is estimated at $65m, with approximately 50% cash outlay incurred by the anticipated closing date.

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