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  17/07/2017 | Packaging

Constantia Flexibles to sell its labels division to Multi-Color Corporation

Constantia Flexibles, Vienna, Austria has signed an agreement to sell its Labels division to the U.S. concern Multi-Color Corporation, Cincinnati, Ohio, for an enterprise value of approximately € 1.15 bn. 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.

Constantia Labels is a global supplier of labels to the beverage, food and home & 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 m in 2016. Established in 1916, Cincinnati, Ohio-based Multi-Color is one of the largest label companies in the world. With approximately 5,500 employees, it operates 45 manufacturing facilities worldwide. Multi-Color achieved sales of USD 923 m 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 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.