CCL Industries Inc. Acquires Faubel & Co.: Expanding Global Presence in Clinical Trials Labeling
Toronto, ON / ACCESSWIRE – CCL Industries Inc., a world leader in specialty label, security, and packaging solutions, has announced the acquisition of Faubel & Co. Nachfolger GmbH (“Faubel”), a specialist in labels for pharmaceutical clinical trials. The acquisition marks a strategic move by CCL Industries to build a stronger global presence in the healthcare sector and positions the company as a key player in clinical trials labeling.
The Acquisition
Faubel, headquartered in Melsungen, Germany, operates a manufacturing facility in the same location and has sales offices in the United States and China. In addition, Faubel owns a controlling interest in a technology subsidiary located in Paderborn, Germany, which is actively developing next-generation solutions for clinical trials, including RFID technology. The company achieved consolidated sales of $66.0 million in 2022, with an adjusted EBITDA of $30.7 million. The acquisition was an all-cash deal amounting to $185.9 million, and Faubel will now operate under the name “CCL Faubel.”
Strategic Rationale
The move to acquire Faubel reflects CCL Industries’ commitment to enhancing its capabilities in the healthcare sector, particularly in clinical trials labeling. Geoffrey T. Martin, President & CEO of CCL Industries Inc., emphasized that clinical trials labeling has been an important part of their North American Healthcare business for some time. With this acquisition, CCL Industries aims to gain access to Faubel’s specialized expertise in the pharmaceutical clinical trials market and expand its presence beyond North America, specifically in Europe and other global markets.
Moreover, the acquisition aligns with CCL’s broader strategy to strengthen its position as a global leader in providing a wide range of products and solutions to multinational customers across various sectors. The inclusion of Faubel’s expertise and capabilities is expected to contribute significantly to CCL’s operational capacity and market reach.
Looking Ahead
The acquisition of Faubel represents an exciting opportunity for CCL Industries Inc. to further diversify its offerings and tap into the growing demand for pharmaceutical clinical trials labeling. As the healthcare industry continues to evolve, the need for specialized labeling solutions for clinical trials is on the rise. By bolstering its presence in this space, CCL Industries is positioning itself to meet the evolving needs of its customers, which include global corporations, government institutions, small businesses, and consumers.
Moreover, the acquisition aligns with CCL’s broader strategy to strengthen its position as a global leader in providing a wide range of products and solutions to multinational customers across various sectors. The inclusion of Faubel’s expertise and capabilities is expected to contribute significantly to CCL’s operational capacity and market reach.
Forward-Looking Statements
As with any major business transaction, it’s essential to consider the forward-looking statements provided in the press release. CCL Industries’ plans to build a global presence in clinical trials labeling involve inherent risks and uncertainties. Factors such as competition, economic conditions, currency exchange rates, technological changes, and changes in government regulations can all impact the company’s future performance.
While CCL Industries’ forward-looking statements are based on various assumptions, there is a possibility that actual results could differ materially from what’s anticipated. As such, investors and stakeholders are encouraged to assess the risks outlined in the 2022 Annual Report and Management’s Discussion and Analysis provided by the company.
Conclusion
The acquisition of Faubel & Co. by CCL Industries Inc. marks a significant step in expanding the company’s global presence in specialty labels for pharmaceutical clinical trials. With Faubel’s expertise and established market position, CCL Industries is set to solidify its leadership in the healthcare sector and meet the evolving demands of its customers worldwide.
As the healthcare industry continues to grow and innovate, CCL Faubel will be at the forefront of providing cutting-edge solutions for clinical trials labeling. The collaboration between CCL Industries and Faubel will undoubtedly yield new opportunities for growth and innovation in the years to come. Investors and stakeholders can look forward to witnessing the positive impact of this strategic acquisition on CCL Industries’ performance and market presence.
