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UPDATE 1-Canada's CCL to buy anti-theft tag maker Checkpoint for $422 mln

Published 2016-03-02, 07:57 a/m
© Reuters. UPDATE 1-Canada's CCL to buy anti-theft tag maker Checkpoint for $422 mln
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(Adds details, background)
March 2 (Reuters) - Canadian label and packaging maker CCL
Industries Inc CCLb.TO is buying U.S.-based Checkpoint Systems
Inc CKP.N , which makes anti-theft tags used by retailers, for
about $422 million.
CCL's offer of $10.15 per share in cash represents a premium
of about 29 percent to Checkpoint's Tuesday closing.
Checkpoint also makes surveillance systems, radio frequency
identification tags, intrusion alarms and digital video
recorders for retailers such as Barnes & Noble (NYSE:BKS) Inc BKS.N and
Target Corp (NYSE:TGT) TGT.N .
The company is expected to post 2015 revenue of about $586.4
million, according to Thomson Reuters I/B/E/S.
Ontario-based CCL said it would assume C$44 million ($33
million) of Checkpoint's net cash as part of the deal.
CCL said it would fund the deal, expected to close in
mid-2016, with its existing $1.2 billion debt.
Checkpoint, which has operations in 29 countries, had 41.6
million shares as of Oct. 28, according to Thomson Reuters data.
BMO Capital Markets was CCL's financial adviser, while
Warner Norcross & Judd was its legal counsel.
Checkpoint's financial adviser was Morgan Stanley & Co LLC (NYSE:MS),
while its legal advisers were Latham & Watkins LLP and Stradley
Ronon Stevens & Young LLP.
($1 = C$1.35)

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