Mumbai-based Super Label Mfg Co, which makes pressure sensitive labels for Indian consumer products and healthcare customers, has agreed to sell a 70% stake to Pacman-CCL, a joint venture between Canada-based CCL Industries and Dubai-based Albwardy Investment, it said in a statement.
The deal is expected to close this month, the company said.
Dubai-based Pacman-CCL will invest $3.75 million to acquire the stake. It will also help reduce debt and provide funding for future expansion.
Super Label will continue to be headed by its founder, Bharat Mehta, though it would immediately become part of Pacman-CCL.
Pacman-CCL now has plants in Dubai, Oman, Saudi Arabia, Pakistan and Egypt, besides India. The company, which is jointly owned by CCL and Dubai-based Albwardy Investment, had sales worth $50 million in 2016. Canada based CCL Industries makes specialty labels for consumer companies.
"Over the last decade, we looked many times at entering India through acquiring a local business. Super Label is one of the best managed firms we have seen. This is the best way forward given Pacman-CCL's proximity to the region,†said Geoffrey T Martin, president and CEO of CCL.
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