The managing shareholder of Innovia Group, The Smithfield group has agreed to an offer from CCL Industries Inc to acquire Innovia Group for CAN $1.13 billion.
The transaction follows a successful period for Innovia during which it has enhanced the capabilities and performance of both its film and banknote businesses. Increasing its strategic focus on high value add and differentiated films with world leading technology, it divested its cellophane business earlier this year while making significant growth investments over the last three years, including a state of the art new facility to produce polymer banknote substrate in Cumbria.
CCL has a complementary presence in the markets in which Innovia operates, with capabilities in security printing, polymer extrusion and surface engineering that are deployed across all business segments.
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.
Mark Robertshaw, chief executive of Innovia Group, said, ‘CCL will be an excellent long term owner for the employees and customers of Innovia. CCL recognises 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.’
