Constantia Flexibles sells labels division to Multi-Color
Constantia Flexibles has signed an agreement to sell its Labels division to Multi-
Color Corporation (“Multi-Color”) for an enterprise value of approximately €1.15
billion ($1.3 billion). The transaction is expected to be completed in the fourth
quarter of 2017, subject to regulatory approvals.
On completion of the transaction, Constantia Flexibles will hold
16.6% of Multi-Color’s outstanding shares, thereby becoming its largest shareholder.
Two representatives of Constantia Flexibles will join Multi-Color’s Board of Directors.
Constantia Labels is a global supplier of labels to the beverage, food and home as well
as personal care industries (HPC), with long-standing customer relationships with
leading brands. It has 23 plants in 14 countries and has roughly 2,800 employees. The
Labels division achieved sales of 605 million euro in 2016.
Established in 1916, Cincinnati, Ohio-based Multi-Color is one of the largest label
companies in the world serving some of the most prominent brands in the following
market segments: Healthcare, HPC, Food & Beverage, Specialty (Automotive &
Consumer Durables), and Wine & Spirits. With approximately 5,500 employees, it
operates 45 manufacturing facilities worldwide. Multi-Color achieved sales of $923
million in fiscal year 2017.
This value-creating transaction will bring together Constantia Labels’ leading food and
beverage business with Multi-Color’s strong wine and spirits and home & personal care
platforms. It will also widen the joint Group’s geographical footprint and create long-term
synergies that will benefit all parties involved. Mike Henry, current EVP 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 Executive Chairman of Multi-Color. After completion of the
transaction, Multi-Color will generate pro forma sales of roughly $1.6 billion and EBITDA
of $300 million.
