The Smithfield Group, the managing shareholder of Innovia Group, has accepted an offer from CCL Industries Inc. to acquire Innovia for CAN $1.13 billion.
Increasing its strategic focus on high value add and differentiated films with world leading technology, Innovia divested its legacy cellophane business earlier this year while making significant growth investments over the last three years, including a new facility to produce polymer banknote substrate in Cumbria.
CCL is the world’s largest specialty label business and is publicly quoted on the Toronto Stock Exchange with a market value in excess of CAN $8 billion. It has a complementary presence in the markets in which Innovia operates, with capabilities in security printing, polymer extrusion and surface engineering.
Mark Robertshaw, Chief Executive of Innovia Group, said, “CCL will be an excellent long term owner for the employees and customers of Innovia. CCL recognizes and values Innovia‘s world leading technology, R&D and differentiation in Films and Security and sees a high degree of complementarity with CCL‘s 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.
Source : China Plastic & Rubber Journal
ABOUT INNOVIA
The Innovia Group consists of three divisions: Films, Security and Systems.
Innovia Films has the longest heritage, established in 1933 supplying cellulose films into the tobacco and food industries. Today Innovia Films supplies a wide range of coated and uncoated Biaxially Oriented Polypropylene (BOPP) speciality films into the labels, flexible packaging, tobacco overwrap, technical industrial and security markets. One of our core competencies is surface engineering which optimises the films functionality and we work extensively with our customers to continue to deliver step change improvements and new products.
Innovia Security launched the first polymer banknotes in Australia in 1988. The business has continued to grow since then and today supplies 24 countries around the world with Guardian® polymer banknotes. We are very proud to be currently producing the £5 and £10 bank notes for the Bank of England, the central bank of the United Kingdom, which will be their 25th country on Guardian®. Key attributes of polymer banknotes are enhanced counterfeit resilience ensuring that a nation’s currency is secure, durability resulting in significant cost savings across the cash chain, improved hygiene and ability to recycle used notes.
Innovia Systems was recently created to market a range of technical solutions for the validation and verification of Guardian® based banknotes as well as products that provide Central Banks independent analysis on quality of banknotes in circulation whether paper or polymer.
Each division has a strong management team leading experienced and dedicated workforces focused on delivering growth through innovation, customer understanding and market knowledge.
