Multi-Color Corporation has agreed to acquire Constantia Flexibles’ labels division for around €1.15bn ($1.3bn).
Once the deal concludes, Constantia Flexibles will have 16.6% stake in Multi-Color and two representatives will join as board of directors. Constantia Flexibles will also secure 3.4 million shares in Multi-Color stock.
Constantia Labels offers label solutions to the customers in the beverage, food and home and personal care industries (HPC).
The firm’s labels division had generated sales of about €605m in the last year. It majorly carries out operations in Europe, Asia and North America.
With around 2,800 employees, Constantia Labels operates 23 plants in 14 countries.
Constantia Labels’ food and beverage business will compliment Multi-Color’s wine and spirits, and home and personal care platforms.
Constantia Labels current CEO Mike Henry will become CEO-elect of Multi-Color, and will work with the current CEO Vadis Rodato who will retire in early 2018 after a transition period.
Subject to regulatory approvals, the deal is expected to complete in the fourth quarter of this year.
Constantia Flexibles CEO Alexander Baumgartner said: “Following a detailed strategy review, we decided that our top-performing Labels division would be better suited with another partner, which will support its ongoing growth story.”
Multi-Color executive chairman Nigel Vinecombe said: “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.”
Based in Cincinnati of Ohio, Multi-Color provides label products to different market products, including healthcare, HPC, food and beverage, specialty (automotive and consumer durables), and wine and spirits.
The company, which has around 5,500 employees, operates 45 manufacturing facilities across the globe. It reported sales of around $923m in fiscal year 2017.
