Monday, September 16, 2013

Seeking Alpha: CCL Industries On A Path Toward Printing Cash Flow

Like it's smaller American cousin Multi-Color (LABL), CCL Industries (CCDBF.PK) is a company whose products are in front of readers' eyes every day, and yet go largely unnoticed. You would never buy a bottle of shampoo or beer that had no label on it, and likewise all manner of companies in consumer goods, healthcare, chemicals, and so on require labels for their products.

That has created a global market worth an estimated $30 billion a year, with close to one-third of that in North America. Through organic growth, helped by the development of more advanced label-making capabilities, and acquisitions, CCL Industries has emerged as the leader in the industry. In this case, though, "leader" still means less than double-digit share, and CCL Industries not only has the opportunity to benefit from acquisition-related synergies, but also further utilize its balance sheet to consolidate a slow-growing but essential industry.

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CCL Industries On A Path Toward Printing Cash Flow

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