CCL Industries Corp. 161 Worcester Road Suite 603 Framingham, MA 01701 U.S.A.

How CCL Industries quietly became the world’s largest label-maker

When it comes to CCL’s success, Stephen MacLeod, an analyst with BMO Capital Markets, points to a series of factors. “You have to take into account the company’s competitive position in the global label-making market, and its strong customer relations, [and] diverse user market,” he says. CCL’s operations span six continents and include 119 facilities, in large part the result of a series of smart acquisitions. The company’s strategy is to make small, tuck-in purchases that provide “exposure to a unique technology or a unique customer set,” notes MacLeod. But CCL has also picked up companies that operate somewhat outside its traditional line of business.
Healthcare supermarket-shopper-labels-shelves-200464106-001-noel-hendrickson-getty-compressor

Resettable cold chain label for vaccines, biologics, and other injectables

f asked to name a booming industry, label making might not be the first that comes to mind. Yet CCL Industries Inc. (TSX: CCL), a Toronto-area manufacturer that bills itself as “the largest label company in the world,” has been quietly growing for years—at an incredible rate.

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Comprising three segments (CCL Label, CCL Container and its new consumer office products arm, Avery), CCL initially manufactured labels and packaging for products in the home and personal-care industry, but it has grown into a major supplier for the pharmaceutical, medical and chemical sectors. That’s hardly the only change, explains CEO Geoffrey Martin. “We’ve gone from being a small-cap stock in Canada to a decent-sized one. We’ve grown from a billion and change in revenue to $4 billion and change in revenue. We’ve gone from being a North American company to a global one,” he says.

It’s hard to overstate CCL’s growth: In the first quarter of 2016 alone, revenue grew by 22.9% year-over-year to reach $866.8 million, while net income jumped 31%. Over the past five of years, CCL’s share price has shot up nearly 600%. The company excels at consolidation and plans to continue expanding its already sprawling network. What’s more, it isn’t satisfied to dominate the label and container market alone.

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