CCL Industries Inc., a world leader in specialty label and packaging solutions has entered into a definitive merger agreement whereby CCL will acquire Checkpoint Systems, Inc. leading manufacturer of technology-driven, loss prevention, inventory management and labeling solutions, including RF and RFID-based, to the retail & apparel industry. Checkpoint has operations in 29 countries including 46 go-to-market units and 21 manufacturing facilities.
The transaction is for US$10.15 per share in an all-cash transaction valued at approximately C$556 million, including net cash. The US$10.15 per share in cash represents a premium of approximately 29% to the closing price on March 1, 2016, the last trading day prior to the signing of the definitive merger agreement. This has been described as a compelling and unique opportunity for CCL to enhance breadth and scale, while creating an opportunity to realise meaningful synergies, and earnings accretion, including expanding CCL’s international operating platform, especially in Asia and creating identified annual synergies of up to $40 million plus meaningful and immediate earnings accretion.
