David Savastano, Editor03.30.16
Smart labels are a strong opportunity for narrow web converters, There are some printers already in the field - Si-Cal and GSI Technologies, to name two – but the largest players have remained relatively silent.
That changed in early March, when CCL Industries, the world’s largest label printer, announced it has entered into a definite agrement to acquire Checkpoint Systems, a major manufacturer of RFID tags and inlays, for $556 million. The boards of directors of both companies unanimously approved the deal, with closing anticipated by mid-2016.
Checkpoint Systems has a major presence in the retail and clothing markets, and is now making inroads in food packaging. In 2015, Checkpoint had revenue of $820 million and adjusted EBITDA of $83 million. One of the reasons Geoffrey T. Martin, president and CEO of CCL, noted for the acquisition is Checkpoint’s relationship to many of the leading retailers.
“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,” Martin said in announcing the move.
CCL Industries had itself an excellent year in 2015, with sales increasing 17.5% to $3.04 billion and net earnings up 36.2% to $295.1 million. The company is aggressive, having made six acquisitions since the beginning of 2015.
RFID has long been used for a variety of needs, including inventory and track-and-trace. We now are seeing RFID tags and sensors tracking food packaging through the supply chain. With the growing interest in omni-channel sales, retailers need to know exactly how many products they have on hand, and where those products are in the supply chain. As one person noted to me recently, it doesn’t do much good for the retailer to have products in the warehouse when there is nothing on the shelves.
The potential for the smart labels market is huge, and having a company with the capabilities of CCL Industries could move the industry forward. I’ve seen Checkpoint’s RF and RFID products in action at The Big Show hosted by the National Retail Federation (NRF), and they have an impressive portfolio.
All in all, the planned acquisition of Checkpoint Systems is a smart move by CCL Industries. It gives CCL entry into the RFID and smart label business, as well as connections to many leading retailers. It should also provide a further boost to the smart labels and RFID markets.
That changed in early March, when CCL Industries, the world’s largest label printer, announced it has entered into a definite agrement to acquire Checkpoint Systems, a major manufacturer of RFID tags and inlays, for $556 million. The boards of directors of both companies unanimously approved the deal, with closing anticipated by mid-2016.
Checkpoint Systems has a major presence in the retail and clothing markets, and is now making inroads in food packaging. In 2015, Checkpoint had revenue of $820 million and adjusted EBITDA of $83 million. One of the reasons Geoffrey T. Martin, president and CEO of CCL, noted for the acquisition is Checkpoint’s relationship to many of the leading retailers.
“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,” Martin said in announcing the move.
CCL Industries had itself an excellent year in 2015, with sales increasing 17.5% to $3.04 billion and net earnings up 36.2% to $295.1 million. The company is aggressive, having made six acquisitions since the beginning of 2015.
RFID has long been used for a variety of needs, including inventory and track-and-trace. We now are seeing RFID tags and sensors tracking food packaging through the supply chain. With the growing interest in omni-channel sales, retailers need to know exactly how many products they have on hand, and where those products are in the supply chain. As one person noted to me recently, it doesn’t do much good for the retailer to have products in the warehouse when there is nothing on the shelves.
The potential for the smart labels market is huge, and having a company with the capabilities of CCL Industries could move the industry forward. I’ve seen Checkpoint’s RF and RFID products in action at The Big Show hosted by the National Retail Federation (NRF), and they have an impressive portfolio.
All in all, the planned acquisition of Checkpoint Systems is a smart move by CCL Industries. It gives CCL entry into the RFID and smart label business, as well as connections to many leading retailers. It should also provide a further boost to the smart labels and RFID markets.