A fragmented industry consolidates

The news that Smyth Companies has acquired Dow industries, and that Multi-Color Corporation (MCC) has increased its holdings in the European wine market demonstrates the profound impact of private equity in reshaping the label converting world. With the backing of Canadian-based private equity firm Novacap, Smyth purchased Dow primarily because of its American East Coast coverage, thereby forming a powerhouse national converter and an entity powerful enough to play on the world stage. Mutli-Color’s latest European acquisition is wine label specialist LA Cromografica, and this follows the announcement that the company is increasing its footprint in South Africa. MCC