Image source: Checkpoint.

What: Shares of Checkpoint Systems (UNKNOWN:CKP.DL) were up 29.8% at 11:20 a.m. ET on Wednesday after Canadian label and packaging company CCL Industries agreed to acquire the anti-theft tag maker for about $422 million.

So what: The all-cash deal values Checkpoint at $10.15 per share and represents a premium of about 29% to its Tuesday closing price. CCL is making the move to expand its international presence while creating meaningful cost savings, and judging by CCL's own 10% pop on the Toronto Stock Exchange, Mr. Market is pleased with the price being paid to do it.

Now what: The deal is expected to be immediately accretive to CCL's earnings and to generate annual synergies of up to $40 million. "We have admired Checkpoint for many years as they built a unique, leading global position providing technology-driven label solutions to the retail & apparel industry," said President and CEO Geoffrey Martin. "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." So while Checkpoint's upside is likely limited at this point, CCL's newly bolstered breadth and scale might be worth looking into.