Sancoa TubeDec, a supplier of innovative custom labeling, decorating and tube making for personal care consumer products, has been acquired for $71 million by CCL Industries (TSX: CCL), a leading global converter of pressure sensitive and film materials posting annual revenue of CDN$1.9 billion. The DAK Group, a middle market investment banking specialist, served as exclusive financial advisor to Sancoa TubeDec in the transaction which closed on February 28, 2014.
With a long-standing focus on advising consumer products businesses, including those in the converting, print and packaging industries, the DAK team managed a competitive global process to uncover multiple interested parties.
“We are pleased to have delivered significant value to Sancoa’s ownership through our unique approach to identifying the right buyer,” noted Alan Scharfstein, President of The DAK Group. “This transaction is a tremendous opportunity for the continued adoption of Sancoa’s innovative technology in the marketplace, and a great fit with CCL’s plans for growth.”
According to Geoffrey T. Martin, President and Chief Executive Officer of CCL, the company expects to find “significant cost, innovation and procurement synergies” from the transaction.
The strategic acquisition delivers CCL Industries proprietary label design and production technology, increased production capacity, and access to a large network of manufacturing customers in the personal care and HBA industries.
Sancoa and its management team offer seasoned industry experience and valuable customer relationships and will join CCL as part of the global Home & Personal Care business unit.
The strategic sale of Sancoa TubeDec joins a long list of transactions led by The DAK Group in the packaging industry since 1984, including deals for paperboard, tubes, flexible packaging, cartons, labels and die cutting technology sold to middle market, private equity and public multinational buyers.