CCL Industries Announces Two Intelligent Label Acquisitions

TORONTO, ON / ACCESSWIRE / April 3, 2023 / CCL Industries Inc. ("CCL") (TSX:CCL.A)(TSX:CCL.B), a world leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses and consumers, announced it has acquired eAgile Inc. ("eAgile") and the intellectual property of Alert Systems ApS ("Alert").

eAgile, located in Grand Rapids, Michigan, is a privately held start-up technology company with proprietary, patented hardware and software solutions for the healthcare industry supplied alongside RFID inlays embedded into labels. The $54 million purchase price includes an estimated $1 million net cash assumed with $7 million deferred for five years. The new business will become an integral part of CCL Label's Healthcare & Specialty business while adding RFID know-how across the Company.

Privately owned Alert, based in Denmark, provides patented anti-theft solutions currently sold alongside Checkpoint's Merchandise Availability Solutions ("MAS") product lines to many European retailers. The acquired technology is expected to add approximately $0.5 million EBITDA to Checkpoint in its first full year, compared to a purchase price of $3 million.

Al Green, Vice President, Technology Development, commented, "I have known the principals at eAgile for many years, closely watching the development of their unique RFID product suite. I look forward to working with them and their team to unlock its potential across the healthcare industry while investigating other opportunities for intelligent labels in CCL's markets outside of retail & apparel."

Geoffrey T. Martin, President & Chief Executive Officer of CCL, commented, "By 2027, we expect eAgile products to generate at least an incremental $15 million EBITDA through a combination of augmenting sales to CCL Label's existing healthcare customer base globally and new business wins. Alert's technology is an important addition to our MAS platform at Checkpoint."

Forward-looking Statements

This press release contains forward-looking information and forward-looking statements (hereinafter collectively referred to as "forward-looking statements"), as defined under applicable securities laws, that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding deferred payments, future opportunities for the products of eAgile and the EBITDA expectations for eAgile and Alert.