CCL Industries (CCL-B) announced the $151M acquisition of Sleever International, a price tag representing just over 6x EBITDA - well below where it trades…
… which should drive a re-rate once integrated. With Sleever operating at roughly half of CCL’s margin profile…
… improving the target’s economics post-close is another lever to drive value, which should be achievable as a function of scale - with the combined label business doing $700M in revenue.
That simple buy and build playbook has legs - with the company’s growing cash balance and low leverage…
… lining up with management’s more favourable M&A outlook.
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Well, I would say in the M&A space, we are seeing some signs of valuations coming back from insanity to something more normal.
Geoffrey Martin (CEO) - CCL Q4’25 call
