Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, April 5, 2024

Article Excerpt

CCL INDUSTRIES INC., $69.15, symbol CCL.B on Toronto, mainly makes packaging products for the food, healthcare, automotive and personal-care industries. Procter & Gamble and Johnson & Johnson are among its major customers. CCL also makes radio frequency identification (RFID) tags and banknotes. The company has four main businesses: CCL (62% of total revenue) makes pressure-sensitive labels for plastic bottles and other forms of packaging. This division also makes aluminum aerosol cans, beverage bottles and flexible plastic tubes. Avery (16%) makes labels, binders, dividers, sheet protectors and writing instruments. Checkpoint Systems (13%) makes RFID tags. Those products help retailers prevent theft and manage their inventories. Innovia (9%) makes polymer banknotes for central banks. The U.S. supplies 39% of the company’s revenue, followed by Europe (31%), Asia (15%), Mexico, Brazil, Chile and Argentina (13%) and Canada (2%). The company has a long history of expanding through acquisitions, and in 2023, it spent $345.8 million to acquire eight companies. The largest acquisition was Faubel & Co…