Checkpoint Systems Acquired by CCL Industries for Approximately $443M

Checkpoint Systems is a manufacturer of loss-prevention solutions for the retail and apparel industry.

TORONTO — CCL Industries announced on Wednesday it has entered into a definitive merger agreement whereby CCL will acquire Checkpoint Systems for $10.15 per share in an all-cash transaction valued at approximately $443 million. The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in mid-2016.

The $10.15 per share in cash represents a premium of approximately 29% to the closing price on March 1, the last trading day prior to the signing of the definitive merger agreement.

Checkpoint is a manufacturer of technology-driven, loss prevention, inventory management and labeling solutions, including RF and RFID-based, to the retail and apparel industry. The business has operations in 29 countries including 46 go-to-market units and 21 manufacturing facilities. For the past 12 months ending Sept. 27, 2015, Checkpoint generated net revenue of approximately $820 million and Adjusted EBITDA (before synergies) of $83 million, resulting in and Adjusted EBITDA margin of 10.2%.

“This transaction represents a highly attractive premium for Checkpoint’s shareholders,” said Checkpoint Systems President and CEO George Babich. “CCL is a recognized global leader in labeling and packaging. Checkpoint, as a division of CCL upon closing, will be able to invest in and grow Checkpoint’s industry leading hardware, software and consumables to create a unique offering, the future of inventory management for brand owners and leading retailers worldwide.”

CCL President and CEO Geoffrey T. Martin issued the following statement on the acquisition: “We have admired Checkpoint for many years as they built a unique, leading global position providing technology-driven label solutions to the retail & apparel industry. We are very pleased to welcome their deeply experienced people to CCL where they will continue to focus on this important industry for emerging ‘smart label’ technologies.”

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