CCL Industries Inc., a Canada-based provider of specialty label, security and packaging solutions, signed a binding agreement to acquire Treofan America Inc., Winston-Salem, N.C., and Trespaphan Mexico Holdings GmbH, Mexico, from its parent company, M&C S.p.A., Italy. The entities to be acquired represent the “Treofan Americas” business in the United States, Latin America and Canada. M&C S.p.A. would continue to control the equivalent European business through Treofan Germany GmbH & Co. KG and Treofan Italy S.p.A, which are not part of this transaction. The acquired Treofan entities will trade under the Innovia brand name.

Treofan Americas produces biaxially oriented polypropylene (BOPP) film from its Zacapu, Mexico, plant, which delivers a capacity of 60,000 tons for specialty applications in consumer packaging and label markets. The transaction also include the Winston-Salem sales office and distribution center.

As a result of the transaction, Treofan Americas will install a state-of-the-art, 10-meter-wide BOPP extrusion line in late 2018, adding 30,000 tons of capacity to the Mexico plant.

“The proposed acquisition gives Innovia a solid strategic footprint for BOPP films in both North America and Europe with highly complementary technologies and products,” says Geoffrey Martin, president and CEO of CCL Industries. “The business will be combined with Innovia in the Americas under a common brand and the leadership of Guenther Birkner, who heads our label interests globally in the food and beverage and healthcare and specialty markets as well as this important new strategic initiative in the materials science arena. I’d like to take this opportunity to acknowledge the deeply experienced Treofan Americas people; we are excited about the prospect of them joining our company, and look forward to their contributions as we move forward with this exciting new initiative.”

“We will use the proceeds from the sale to de-leverage the company and to further develop our production sites in Europe, thus driving our strategy for profitable growth,” says Dr. Walter Bickel, chief executive officer of Treofan. “We will advance our product portfolio into speciality films and also strengthen our research and development in this area.”