Retail Security Giant Checkpoint Systems Bought by CCL Industries for $US443M
CCL Industries says has entered into a definitive merger agreement whereby CCL will acquire RFID-leader Checkpoint Systems for $US10.15 per share in an all-cash transaction valued at approximately $443 million. The transaction has been approved by the boards of directors of both companies and is expected to close in mid-2016.
Checkpoint RF and RFID-based tagging systems to protect against shrinkage in the retail and apparel industry. The business has operations in 29 countries and turned over net revenue of $US820 million for 2015.
“This transaction represents a highly attractive premium for Checkpoint’s shareholders,” said Checkpoint Systems President and CEO George Babich. “CCL is a recognized global leader in labeling and packaging. Checkpoint, as a division of CCL upon closing, will be able to invest in and grow Checkpoint’s industry leading hardware, software and consumables to create a unique offering, the future of inventory management for brand owners and leading retailers worldwide.”
Meanwhile, CCL President and CEO Geoffrey T. Martin said CCL has admired Checkpoint for many years.
“They built a unique, leading global position providing technology-driven label solutions to the retail and apparel industry,” he said. “We are very pleased to welcome their deeply experienced people to CCL where they will continue to focus on this important industry for emerging smart label technologies.”
The $10.15 per share in cash represents a premium of approximately 29 per cent to the closing price on March 1, the last trading day prior to the signing of the definitive merger agreement.♦