CCL Industries to acquire Sleever International

Executive Summary

• CCL Industries Inc. has signed a binding option agreement to acquire Sleever International Company SA and its subsidiaries for an estimated purchase consideration of $151 million.
• The acquisition combines CCL’s sleeve product lines with Sleever’s, creating a combined sales base of approximately $700 million for 2025.
• The transaction is expected to close by mid-2026, subject to customary closing adjustments and regulatory procedures, including workers council consultations in France.

Key Details

• Transaction Structure: Binding option agreement to acquire Sleever International Company SA, its subsidiaries, and related companies.
• Purchase Consideration: Estimated at approximately $151 million, paid in a combination of cash and assumed net debt, subject to customary closing adjustments.
• Financial Metrics of Target (Sleever):
  • 2025 Sales: Approximately $213 million.
  • Estimated Adjusted EBITDA Margin: 11.1%.
  • Net Tangible Assets: Expected to represent approximately 90% of the CCL purchase price equation.
• Operational Scope of Target:
  • Family-owned provider of shrink sleeve labels, application equipment, and decorating services.
  • Serves consumer packaged goods and health care customers globally.
  • Headquartered near Paris, France.
  • Operates 11 manufacturing facilities in Canada, France, Germany, Belgium, Ireland, Poland, China, and Brazil.
  • Employs approximately 900 people.
• Strategic Rationale:
  • Combine respective sleeve product lines (combined 2025 sales of ~$700 million).
  • Aim to raise Sleever's adjusted EBITDA margins to the CCL segment average through strategic investments in innovation, cost savings, and new sales growth.
• Post-Closing Arrangements:
  • Eric Fresnel (principal shareholder and leader of Sleever) will remain with the company post-close in an advisory capacity.
• Closing Timeline: Expected by mid-2026, subject to completion of certain procedures, including workers council consultations in France.

Notable Quotes

• "We have known Eric Fresnel, the visionary, entrepreneurial leader and principal shareholder of Sleever, for almost 20 years. We are excited to have the opportunity to combine our respective sleeve product lines, together, approximately $700-million sales in 2025. Over the next several years, we aim to raise Sleever's adjusted EBITDA margins up to the CCL segment average through a combination of strategic investments to drive innovation, cost savings and new sales growth opportunities. Eric Fresnel will continue with us postclose to provide support in an advisory capacity and we look forward to welcoming Sleever's 900 employees to our company." — Geoffrey T. Martin, President and CEO of CCL Industries