The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in mid-2016.
The US $10.15 per share in cash represents a premium of approximately 29% to the closing price on March 1, 2016, the last trading day prior to the signing of the definitive merger agreement.
“We have admired Checkpoint for many years as they built a unique, leading global position providing technology-driven label solutions to the retail and apparel industry,” said Geoffrey T. Martin, president and CEO of CCL. “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.”
Checkpoint is a leading manufacturer of technology-driven, loss prevention, inventory management and labeling solutions, including RF and RFID-based, to the retail and apparel industry. The business has operations in 29 countries including 46 go-to-market units and 21 manufacturing facilities. For the last twelve months ended Sept. 27, 2015, Checkpoint generated net revenue of approximately $820 million and Adjusted EBITDA (before synergies) of $83 million, resulting in an Adjusted EBITDA margin of 10.2%.
Checkpoint is a technology-driven label solutions provider to the retail and apparel sector, with a long-standing, blue chip customer base of top global retailers and apparel brands. The company offers an attractive “smart label” product portfolio including radio-frequency identification (“RFID”) solutions.
The transaction will be subject to Checkpoint shareholder approval at a special shareholder meeting expected to take place in the second quarter of 2016. Closing of the transaction is subject to customary conditions, including receipt of relevant regulatory approvals, and is expected to occur in mid-2016, subject to approval of Checkpoint’s shareholders.
Upon the closing of the transaction, Checkpoint will be reported as a new operating segment of CCL.