Merger Plans Announced for Multi-Color Corp. and Fort Dearborn
Platinum Equity has announced the signing of a definitive agreement to sell Multi-Color Corporation (MCC), a global leader in label solutions, to affiliates of Clayton, Dubilier & Rice (“CD&R”). Financial terms of the transaction were not disclosed.
In connection with the transaction, CD&R also announced it has signed a definitive agreement to acquire Fort Dearborn from Advent International, and that it intends to combine MCC and Fort Dearborn to create a global label solutions company serving consumer packaged goods companies worldwide. The transactions are expected to close by the end of 2021, subject to customary regulatory approvals and other conditions.
“We have had an outstanding partnership with Nigel and the MCC management team,” said Platinum Equity Partner Louis Samson. “We worked together to significantly transform the business and drive both organic and acquisitive growth, which led to substantial improvements in top-line and earnings performance. The company is a natural fit with Fort Dearborn and both companies will benefit from the combination.”
Platinum Equity acquired MCC in 2019 in a public-to-private transaction and combined it with WS Packaging, another US-based labelling company the firm acquired in 2018.
MCC today is one of the world’s largest producers of high-quality, pressure sensitive, in-mold and heat transfer labels and a major manufacturer of cut and stack, roll fed, aluminum and shrink sleeve labels. The company services the world’s most prominent brands across four business segments: food and beverage, wine and spirits, home and personal care, and hardware and specialty.
“At MCC, we have continually worked to invest in our people, processes and technology in order to strengthen our organization and become one of the most trusted and innovative label manufacturing leaders across the globe,” said Nigel Vinecombe, CEO of MCC. “Platinum’s financial and operational support have been instrumental to our success. This combination with Fort Dearborn and the ongoing support of value-added investors provide the opportunity to continue to strengthen the business and provide best-in class service to our customers.”
“Platinum has had a lot of experience creating value in the label and packaging sectors and MCC is another prime example,” said Platinum Equity Managing Director Jason Price. “We appreciate all the hard work Nigel and everyone at the company has put in over the years and wish the entire team great success.”
Platinum Equity previously owned BWAY (rigid containers), Contego (food, beverage and pharmaceutical packaging) and MacTac (pressure sensitive materials).
The firm’s current portfolio includes Ball Metalpack (metal food and aerosol containers) and Husky (injection molding systems for the plastics industry).
Earlier this week, MCC also announced it signed a definitive agreement to acquire Hexagon Holdings (“Hexagon”), an Auckland, New Zealand-based provider of high-value premium labels. Financial terms of the transaction were not disclosed. Hexagon is a privately-owned group of businesses producing self-adhesive labels, shrink sleeves, linerless wraps and VIP solutions for clients across Australia and New Zealand.
Latham & Watkins LLP and MinterEllison are serving as legal counsel to MCC on the acquisition of Hexagon.
Latham & Watkins LLP and Keating Muething & Klekamp PLL are serving as legal counsel to Platinum Equity on the sale of MCC to CD&R.
The preceding press release was provided by a company unaffiliated with Packaging Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Packaging Impressions.