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Multi-Color to Buy Label Division of Constantia Flexibles

Published on 2017-07-19. Author : SpecialChem

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.


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.

Multi-Color to Buy Label Division of Constantia Flexibles

Value-creating Transaction


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 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 $1.6 billion and EBITDA of $300 million, before synergies.

Constantia Flexibles sells Labels division to Multi-Color


Alexander Baumgartner, CEO of Constantia Flexibles:

“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. Constantia Flexibles will use proceeds from the transaction todeleverage its balance sheet and enable further acquisitions in the dynamic and consolidating flexible packaging industry. We will also focus on innovative products and services, as well as new technologies to strengthen our existing Food and Pharma divisions.”

Evolution of Multi-Color


Nigel Vinecombe, Executive Chairman of Multi-Color:

“The acquisition of Constantia Labels marks a major milestone in the evolution of Multi-Color. 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. I welcome Mike Henry to the executive team and representatives from Constantia Flexibles to the Board of Directors of Multi-Color.”

Goldman Sachs acted as financial advisor and Willkie Farr & Gallagher LLP as legal advisor to Constantia Flexibles for the transaction.

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Source: Constantia Flexibles
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