TORONTO — Packaging specialist CCL Industries Inc. has agreed to sell its 40 percent stake in European joint venture ColepCCL for $140 million in cash to its majority partner RAR Sociedade de Controle SA.
The partnership operated the largest European contract manufacturer of personal care, household and pharmaceutical products.
''ColepCCL has many opportunities for both internal growth and acquisitions; however, upon evaluating our own growth opportunities, we have decided to focus our investment dollars in the businesses that we control,'' CCL chief executive Donald Lang said in a statement.
ColepCCL contributed $182.7 million in sales and $18 million in pretax earnings to CCL's financial results in 2006. The sale will nearly double CCL's initial investment in the project, the company said.
Toronto-based CCL will receive half of the sale price on closing with the balance to be paid at the end of February 2008.
CCL manufactures pressure-sensitive, shrink sleeve and in-mould labels, aluminum containers and plastic tubes for the home and personal care, health-care and specialty food and beverage sectors.
Shares in the company were down four cents at $45.06 in midday trading on the Toronto Stock Exchange.