Constantia Flexibles, a global supplier of labels to the beverage, food and home & personal care industries (HPC), sells its Labels division to Multi-Color Corporation (“Multi-Color”) for approximately €1.15 billion ($1.3 billion).
The transaction is expected to be completed in the fourth quarter of 2017. Constantia Flexibles will be paid mostly in cash. In addition, Constantia Flexibles will get 3.4 million shares in Multi-Color stock, holding a 16.6% of Multi-Color shares, thereby becoming its largest shareholder. Multi-Color’s Board of Directors will get two representatives from Constantia Flexibles.
Constantia Labels has long-standing customer relationships with leading brands. With its 23 plants in 14 countries, the Labels division achieved sales of 605 million euro in 2016.
Multi-Color, Cincinnati, Ohio-based was founded in 1916 and is one of the largest label companies in the world serving some of the most reputed brands in the Healthcare, HPC, Food & Beverage, Specialty (Automotive & Consumer Durables), and Wine & Spirits market segments. Multi-Color achieved sales of $923 million in the fiscal year 2017 from 45 manufacturing facilities worldwide.
“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. At the same time, Constantia Flexibles will participate in the future success story of Multi-Color through its shareholding”, said, Alexander Baumgartner, CEO of Constantia Flexibles.
Nigel Vinecombe, Executive Chairman of Multi-Color, commented, “The acquisition of Constantia Labels marks a major milestone in the evolution of Multi-Color. We are diversifying our business and creating a global leader with a transaction that is financially attractive, which will better help us serve our customers. I welcome Mike Henry to the executive team and representatives from Constantia Flexibles to the Board of Directors of Multi-Color.”