CCL Sells K-G Packaging Business Unit

Manufacturing, packaging and labeling solutions provider CCL Industries Inc., based in Toronto, Canada, has sold its K-G Packaging business unit located in Toronto.

K-G Packaging operates three separate business lines with annual sales of approximately $53 million. The original custom manufacturing business formulates and fills aerosol and liquid products for Canadian marketers of paint, automotive, industrial, insecticide and specialty chemical products. In addition, K-G Packaging manufactures and markets aerosol products under two separate business entities known as Air Guard Control and North American Professional Products (NAPP). Air Guard Control markets insect and odor control solutions to customers in over 30 countries, while NAPP markets the Crown brand of industrial adhesives, cleaners, lubricants, paints and other specialty products through its distributor network to a North American customer base.

CCL has sold these businesses separately to maximize shareholder value. The NAPP transaction was completed at the end of 2001, the Air Guard Control disposition occurred in early January and the sale of K-G’s custom manufacturing business closed March 21. CCL will receive $26 million in cash and a $2 million note from the three transactions before closing adjustments.

“I am pleased that each of these businesses has been acquired by companies with a focused growth strategy in their specialty markets,” said Donald G. Lang, president and chief executive officer, CCL Industries. “These transactions enable CCL to divest non-core businesses and to focus our much larger custom manufacturing and outsourcing division on the personal care and household categories.”