Multi-Color Inks Deal to Acquire Constantia Labels for $1.3B

Multi-Color Corp. announced on Monday that it has inked a deal to acquire the Labels Division of Constantia Flexibles for approximately $1.3 billion in cash and stock, according to a press release.

Multi-Color Corp. was already one of the biggest players in the packaging industry — clocking in on our sister publication's Printing Impression's PI400 list at No. 9 out of the 400 largest printing companies (and the No. 1 packaging company to make the list) in the U.S. and Canada with approximately $950,000 in annual sales ($1.6 billion in revenues and EBITDA according to the press release) — but the addition of Constantia Flexibles' Label Division will bring significant increases to the company's annual revenues and EBITDA.

Multi-Color Corp. has extensive experience in the wine and spirits, home and personal care, and health care industries, but the addition of Constantia Labels will solidify its growth in the Food and Beverage markets.

"The acquisition of Constantia Labels marks a major milestone in the evolution of Multi-Color," Nigel Vinecombe, Executive Chairman of Multi-Color, said in the press release.  "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."

Constantia Flexibles' global presence will also help extend Multi-Color's reach in the packaging industry, especially with an increased footprint in Asia.

Also, according to the company's release, Mike Henry, EVP and head of Constantia Labels, is expected to become CEO-elect of Multi-Color Corp., as the current CEO, Vadis Rodato is expected to retire in early 2018.

The transaction is expected to close in the third fiscal quarter of 2018, and is subject to customary closing conditions.