CCL Industries plans $450 million term loan for Innovia acquisition

By Wendy Van Sickle

Columbus, Ohio, Dec. 19 – CCL Industries Inc. expects to obtain a new $450 million two-year term loan from a syndicate of banks led by Bank of Montreal and plans to draw on its existing revolving credit facility to fund its C$1.13 billion acquisition of the Innovia Group of companies, according to a press release.

The transaction is expected to close by the end of the first quarter of 2017.

“At closing our expected pro forma net debt to EBITDA leverage ratio is estimated at a conservative 2.5 times, with additional balance sheet liquidity of approximately C$700 million,” Geoffrey T. Martin, president and chief executive officer of CCL, said in the release.

CCL is a Toronto-based provider of specialty packaging services for the consumer products and health-care industries. Innovia is a Wigton, England-based manufacturer of specialty films.

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