Page 56 - Plastics News January 2017

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CCL Industries buys BOPP films maker Innovia for $ 845 mn
Canadian specialty labels maker CCL Industries Inc has
acquired Innovia Group, the UK-based manufacturer said, “CCL will be an excellent long term owner for the
employees and customers of Innovia. CCL recognises

of specialty BOPP (biaxially oriented polypropylene) films and values Innovia’s world leading technology, R&D and

andpolymer banknote substrate, from the Smithfield differentiation in films and security and sees a high

Group, the managing shareholder of Innovia, for CAN$ degree of complementarity with CCL’s own capabilities

1.13 billion ($ 845 million). The acquisition will propel CCL and markets to establish new growth opportunities for

into a leadership position in the disruptive, fast growing their business.”

polymer banknote market while further consolidating its Guru Gobind Singh refinery
presence in the materials science arena with propriety mulls Rs 5,000 crore expansion
BOPP filmstechnology for the label, packaging and at Bhatinda
security sectors. Innovia is a leading global producer
of specialty, high performance, multi-layer, surface The Guru Gobind Singh refinery at Bhatinda in Punjab
engineered BOPP filmsfor label, packaging and security plans to increase refining capacity to 18 mln tpa
applications. The business has film extrusion, coating and set up a petrochemical complex, as per sources.
and metallising facilities across the UK, Belgium and The Bhatinda Refinery is run by HPCL-Mittal Energy Ltd
Australia as well as high security, specialised polymer (HMEL), a joint venture between Hindustan Petroleum
banknote operations in the UK, Australia and Mexico with Corp. Ltd and Mittal Energy Investments Pvt. Ltd,
1200 employees and sales offices in 16 countries around Singapore. HPCL and Mittal Energy Investments hold
the world. For 2017,Innovia is expected to generate net 49% stake each in the venture, with financial investors
revenue of approximately $ 570 million and estimated holding 2%. According to reports the company would
EBITDA of $ 155 million. be funding expansion through a combination of equity

The deal with CCL follows a highly successful period and debt syndication by banks to the tune of Rs5,000-
forInnovia during which it has substantially enhanced 6,000 crore. In an emailed response, HMEL said, “We
the capabilities and performance of both its film and continue to evaluate various opportunities to enhance
banknote businesses. CCL, with a market value in excess and expand our business; however, as a matter of
of CAN $8 billion, employs more than 20,000 people policy we do not comment on future plans.” Engineers
and operates from 156 production facilities across 35 India Ltd, an engineering consultancy and engineering,
countries on 6 continents. CCL has a complementary procurement and construction (EPC) service provider,
presence in the markets in which Innovia operates, is working on a feasibility report on the refinery’s
with capabilities in security printing, polymer extrusion expansion and the petrochemical unit.
and surface engineering that are deployed across all
business segments. Innovia’s pre-eminent R&D and high
technology capabilities provide a platform for CCL to
grow and further enhance its offer in these markets.
Mark Robertshaw, chief executive of Innovia Group,

• January 2017 • Plastics News 56