Multi-Color Corporation (MCC) is acquiring the labels division of Constantia Flexibles GmbH for approximately €1.15 billion. The combined annual revenue of the two businesses will be around $1.6 billion and the transaction is expected to close in the third quarter of 2018.
‘The acquisition of Constantia Labels marks a major milestone in the evolution of Multi-Color,’ said Nigel Vinecombe, executive chairman of MCC. ‘We are bringing together complementary talents in markets and geographies, diversifying our business and creating a global leader with a transaction that is financially attractive, which will better help us serve our customers.’
MCC, headquartered near Cincinnati, in Ohio, has 5500 employees, and is active in the home & personal care, wine & spirits, food & beverage, healthcare and specialty sectors. It serves international brand owners in North, Central and South America, Europe, China, Southeast Asia, Australia, New Zealand, and South Africa with a range of the label technologies, including pressure-sensitive, glue-applied, in-mould, shrink sleeve and heat transfer.
Serving the food, beverage and consumer packaging goods industries, Constantia Labels has 2800 employees, with 23 production plants across 14 countries and major operations across Europe, Asia and North America. It reported net sales of approximately €605 million for the year ending December 2016.
The companies intend to exploit the growth opportunities they each bring with MCC utilising Constantia’s European operational footprint and assets in home & personal care, while Constantia will expand in the food & beverage sector through MCC’s US advantage. The stronger combined footprint in Asia will provide further revenue opportunities.
Mike Henry, who has managed Constantia’s labels division for the past three years, has been named as the new CEO of MCC. He brings 17 years of experience in the labels sector, having started his career at KPMG as a chartered accountant and spent 14 years in senior management roles for Spear Labels (in Cincinnati), before the company was bought by Constantia Labels. Current CEO, Vadis Rodato, is expected to retire in early 2018, while Nigel Vinecombe will remain executive chairman. ‘I am delighted to take on this new opportunity and, together with an outstanding team of employees, build on the strengths of the combined businesses to drive forward Multi-Color to further success in the global labels industry,’ said Mr Henry.
