Constantia Flexibles – Multi-Color buys labels business for EUR 1.15 billion
AUSTRIA • Constantia Flexibles has signed an agreement to sell its labels division to Multi-Color Corporation for an enterprise value of approximately EUR 1.15 billion (USD 1.3 billion). The transaction is expected to be completed in the fourth quarter of 2017, subject to regulatory approvals.
According to the press release of the company, the majority of the transaction is payable in cash, while Constantia Flexibles will also receive 3.4 million shares in Multi-Color stock. On completion of the transaction, the flexible packaging company will hold 16.6% of Multi-Color, thereby becoming its largest shareholder. Two representatives of Constantia Flexibles will join Multi-Color’s board of directors.
Mike Henry, current CEO of Constantia Labels, will become CEO-elect of Multi-Color, and will work closely with the current CEO Vadis Rodato, who will retire in early 2018 after a transition period. Nigel Vinecombe will remain in his current role as chairman of Multi-Color. After completion of the transaction, Multi-Color will generate pro forma sales of roughly USD 1.6 billion and EBITDA of USD 300 million, before synergies.
According to the company Ohio-based Multi-Color is one of the largest label companies in the world serving market segments such as healthcare, food & beverage, wine and spirits. With approximately 5,500 employees, it operates 45 manufacturing facilities worldwide and has achieved sales of $923 million in fiscal year 2017. Goldman Sachs acted as financial advisor and Willkie Farr & Gallagher LLP as legal advisor to Constantia Flexibles for the transaction.