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March 2 (Reuters) - Canadian label and packaging maker CCL Industries Inc is buying U.S.-based Checkpoint Systems Inc, which makes anti-theft tags used by retailers, for about $422 million.
CCL’s offer of $10.15 per share in cash represents a premium of about 29 percent to Checkpoint’s Tuesday closing.
Checkpoint also makes surveillance systems, radio frequency identification tags, intrusion alarms and digital video recorders for retailers such as Barnes & Noble Inc and Target Corp.
The company is expected to post 2015 revenue of about $586.4 million, according to Thomson Reuters I/B/E/S.
Ontario-based CCL said it would assume C$44 million ($33 million) of Checkpoint’s net cash as part of the deal.
CCL said it would fund the deal, expected to close in mid-2016, with its existing $1.2 billion debt.
Checkpoint, which has operations in 29 countries, had 41.6 million shares as of Oct. 28, according to Thomson Reuters data.
BMO Capital Markets was CCL’s financial adviser, while Warner Norcross & Judd was its legal counsel.
Checkpoint’s financial adviser was Morgan Stanley & Co LLC, while its legal advisers were Latham & Watkins LLP and Stradley Ronon Stevens & Young LLP. ($1 = C$1.35) (Reporting by Anet Josline Pinto in Bengaluru; Editing by Saumyadeb Chakrabarty)