The Smithfield Group, the managing shareholder of Innovia Group (Innovi”), a global leader in specialty BOPP films and polymer banknote substrate, has agreed to an offer from CCL Industries Inc. (CCL), a global specialty industrial business, to acquire Innovia Group for CAN $1.13 billion (€810 million).

The transaction follows a highly successful period for Innovia during which it has substantially enhanced the capabilities and performance of both its film and banknote businesses. Increasing its strategic focus on high value add and differentiated films with world leading technology, it divested its legacy cellophane business earlier this year while making significant growth investments over the last 3 years, including a state of the art new facility to produce polymer banknote substrate in Cumbria.

CCL is the world’s largest specialty label business and is publicly quoted on the Toronto Stock Exchange with a market value in excess of CAN $8 billion. It employs more than 20,000 people and operates from 156 production facilities across 35 countries on 6 continents. CCL has a complementary presence in the markets in which Innovia operates, with capabilities in security printing, polymer extrusion and surface engineering that are deployed across all business segments. Innovia’s pre-eminent R&D and high technology capabilities provide a platform for CCL to grow and further enhance its offer in these markets. The transaction is subject to regulatory and other change of control approvals and customary completion procedures with closing expected by the end of the first quarter, 2017.

Mark Robertshaw, chief executive of Innovia Group, said, “CCL will be an excellent long term owner for the employees and customers of Innovia. CCL recognizes and values Innovia’s world leading technology, R&D and differentiation in films and security and sees a high degree of complementarity with CCL’s own capabilities and markets to establish new growth opportunities for their business.”