Multi-Color Establishes Latin American Operations
CINCINNATI, Ohio—Multi-Color Corporation (MCC) announced that it entered into agreements to buy 70 percent ownership in two label operations in Latin America: one in Santiago, Chile and the other in Mendoza, Argentina, with regional partner Fernando Aravena owning the remaining 30 percent. Aravena has more than 25 years experience in the Latin American label industry as owner and manager of operations in Chile, Argentina, Mexico, and Peru.
MCC's initial investment is $3.7 million and is effective on May 2. Existing business assets will be transferred to two new companies, Collotype Labels (Chile) S.A. and Collotype Labels (Argentina) S.A. The companies will focus on providing premium labels to the expanding Latin American wine and spirit markets and thus will operate using MCC's Collotype trade name.
"We have been keen to establish operations in Latin America and see this as an attractive first step. We have known Mr. Aravena for many years and appreciate this opportunity to partner with him and his established team. They have a proven track record in the region, have recently invested in the latest pressure sensitive label technology and have long standing customer relationships. Together we see exciting growth opportunities in these developing markets," said MCC President and CEO, Nigel Vinecombe.