CCL to buy Checkpoint in $443m deal
THOROFARE, N.J.—In a transaction valued at $443 million, Checkpoint Systems, a supplier of retail security and asset management solutions, today announced that it has agreed to be acquired by CCL Industries, a specialty packaging solutions company, for $10.15 per share in cash.
It’s a deal that integrators who do retail security will be interested in, Imperial Capital’s Jeff Kessler told Security Systems News.
Checkpoint Systems directly competes with Tyco's Sensormatic division, and to a lesser extent, Zebra Technologies and Netherlands-based Nedap, Kessler said.
Checkpoint does provide electronic article surveillance (EAS) solutions and has “44 percent market share by store (roughly 35 percent by revenue),” according to Imperial Capital. Tyco has 23 percent market share by store and 40 percent market share by revenue.
Kessler told SSN that once all of the components are integrated, “CCL will have a more complete solution [encompassing] anti-counterfeiting, anti-theft, inventory management, asset management and logistics.”
Combined with CCL, Checkpoint will be “a better competitor to Tyco, [which has a one-stop-shop retail solution],” Kessler said.
The purchase price represents a premium of 29 percent over Checkpoint’s closing share price on March 1, 2016.
Kessler said CCL has “done a spectacular job making acquisitions of companies that fit into its mold over the last five years.” CCL’s stock has jumped from $20 to $200 in the past four years.
The Checkpoint deal “adds more arrows to their quiver, and they bought it at a really good price,” Kessler said.
“This acquisition should allow CCL to expand its international operating platform and realize immediate earnings accretion,” he said.
The transaction is subject to approval by Checkpoint’s shareholders.
Checkpoint expects to hold a special meeting of its shareholders in the near future.
In 2013, Checkpoint sold CheckView, its integration and monitoring business, to a private equity firm for $5.4 million.