Adds US Anti-Counterfeit Packaging Capability with CFC Acquisition
Sydney, Sep 1, 2015 AEST (ABN Newswire) - Anti-counterfeiting technology company YPB Group Limited (
ASX:YPB) has successfully completed the acquisition of US printing company Continuous Forms Control Inc. (CFC), to be renamed YPB Print Solutions Inc. This stems from the binding agreement announced on 1 June 2015.
Highlights:
- Addition of anti-counterfeiting packaging capability now complete
- Ralph Davis appointed Global President - YPB Print Solutions
- Anti-counterfeit packaging market growing at 14% CAGR - estimated at $228.6 bn by 2019
- YPB continues strategy of addressing customer demands including packaging, engagement
Based in California, CFC and Ralph Davis have more than 40 years' experience in printing and packaging with existing contracts in consumer packaging including apparel with trim items such as labels, tags, buttons and rivets.
The Company is also pleased to announce the appointment of Ralph Davis as Global President YPB Print Solutions to lead up YPB's print capabilities which are being rolled out throughout China, South-East Asia, Australia, and of course USA.
YPB will use its acquisition of CFC to position itself as a leading player in the growing market for anticounterfeit packaging and labelling, estimated to be valued at US$228.6 bn by 2019 in a recently published research report. This market is projected to grow at a healthy CAGR of 14.1% between 2014 and 2019. Authentication technologies are projected to grow at the highest CAGR of 16.3%, because of the increasing awareness about counterfeit products.
The global anti-counterfeit clothing and accessories packaging market alone is expected to grow substantially in coming years to reach $20.5 billion by 2020. The Asia-Pacific region, a focus for YPB, is projected to be the fastest growing market in this period as small-scale clothing industries seek to establish brand image in the region.
High-demand is expected for cost-effective authentication technologies in packaging, paving the way for YPB's tracer-scanner technology coupled with the technical expertise and manufacturing capabilities in packaging of CFC. YPB also envisages strong uptake of its consumer engagement platform, Brand Reporter in the packaging sector.
The integration of Print management will greatly increase YPB's access to revenue streams and add to the opportunities for consumer engagement.
"CFC's printing and packaging expertise provides a significant revenue opportunity that complements the YPB strategy to add revenue streams by providing customers more ways to PROTECT and ENGAGE around product authentication," said YPB Group Executive Chairman and CEO John Houston.
"We've already commenced on executing this strategy with CFC having worked with them for the past 6 months and will be aggressively pursuing opportunities in the sector."
The key terms of the acquisition are as follows:
YPB will acquire 100% of the issued shares in CFC for a total consideration of US$600,000 comprising the following components:
- YPB fully paid ordinary shares valued at US$300,000 (converted to AU$ on 31 July 2015) at an issue price of $0.35 per share, such shares being escrowed for 12 months
- US$50,000 paid on signing of the Letter of Intent
- US$150,000 paid no later than 1 October 2015
- US$100,000 paid no later than 1 August 2015
Having completed the acquisition YPB senior management warmly welcome Ralph and his team into the YPB family having already seen positive demonstrations of their skills and Ralph's significant business acumen.
YPB will continue to pursue appropriate strategic acquisitions, which compliment the Company's business model to be a global leader in the provision of anti-counterfeit products and services.
To view the release, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-YPB-876695.pdf
About YPB Group Ltd
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