Target M&A Report Analysis: A Sticky Discipline for the Label Business

CCL Industries has proven to be an adept and disciplined serial acquirer of relatively small bolt-on transactions for its label and Avery divisions. The company announced another acquisition in the label printing segment, acquiring Eukerdruck and Pharma Druck, two German companies with common ownership.

The transaction valued the acquired companies and related real estate at $31 million including assumed debt. The reported sales of the combined companies were $40 million with a respectable 14.0% adjusted EBITDA of $5.6 million. CCL paid the sellers a multiple of 5.54 times adjusted EBITDA, absolutely consistent with the pricing range CCL has established for its acquisitions in the label segment.