FDBusiness.com

Labels multinational CCL Industries has pulled out of a deal to acquire John Watson & Co, the Scottish spirits label specialist

The news comes as the Canadian labelling giant announced that it had plans to buy two business units from Avery Dennison for $500 million cash.

In a statement about pulling out from the John Watson & Co deal, CCL said that both parties were “unable to reach agreement on contractual terms, and jointly decided to terminate further discussions”.

The deal was announced in November last year and had been expected to be completed in early 2014.

CCL had promised to invest in John Watson & Co, which is based in Glasgow and has turnover of around £12m, primarily in the spirits industry.

CCL Industries said its label division will continue to service the spirits industry in Scotland from its existing UK operations in East Kilbride and Castleford.

CCL employs 6,600 people and has 75 plants globally. In relation to its Avery Dennison business unit takeover plans, Geoffrey Martin, president and chief executive of CCL Industries, said, “This acquisition has the potential to transform our company at many levels.

“We are acquiring the Avery brand as part of the transaction to build on the franchise established for many decades for labels and other printable media that consumers and businesses use in digital computer printers around the world.”