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CCL acquired Woelco AG, a supplier of durable labeling systems for Industrial & Automotive customers based near Stuttgart with subsidiary operations in both the United States and China. The $27 million net cash purchase consideration includes a state-of-the-art manufacturing facility held in a related German property company. 2015 sales were $31 million, with adjusted EBITDA of approximately $4.5 million. Dieter Woelfle, the principal shareholder of Woelco, will be appointed Managing Director of the European Industrial & Automotive label business under the CCL Design identity, reporting to Peter Fleissner, Group Vice President.
In addition, CCL acquired Label Art Ltd. and Label Art Digital Ltd., privately owned companies with common shareholders, based in Dublin, Ireland. Label Art is a leading pressure sensitive label producer in Ireland with a focus on Healthcare & Specialty customers in Ireland and the UK. 2015 sales were $17 million with adjusted EBITDA of approximately $3 million. The agreed purchase consideration in acquired debt and cash is $15 million, subject to customary closing adjustments. The new business will trade as CCL Label Ireland with immediate effect.
Finally, CCL invested $6 million in cash to increase its stake to 75% in the tube manufacturing joint venture in Bangkok, Thailand, with Taisei Kako Co. Ltd. of Japan. As CCL now has management control of this operation, 2016's results will be consolidated with CCL Label's Home & Personal Care business with a minority interest adjustment. CCL-Taisei's 2015 sales were nominal with start-up costs.
Geoffrey T. Martin, President & CEO of CCL, commented, "We have known the management of Label Art for many years and welcome them and the deeply experienced Woelco team to CCL. These acquisitions bring strategically important new geography and capability to our Healthcare & Specialty and CCL Design businesses respectively. Our increased investment in CCL Taisei strengthens our growing commitment to our tube product line globally for Home & Personal Care customers while maintaining an important partnership and market presence in Japan."
