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    Multi-Color Corporation buys Constantia Flexibles' Labels division

    Beauty, Personal Care, Eating, Drinking, Health, Home Care, Consumer Durables, Primary Packaging, Secondary Packaging, Flexible Materials

    Constantia Labels is a global supplier of labels to the beverage, food, and home and personal care industries, 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 million EUR in 2016. MCC is one of the largest label companies in the world serving some of the most prominent brands in the following market segments: healthcare, home and personal care, food and beverage, specialty (automotive and consumer durables), and wine and spirits. With approximately 5,500 employees, it operates 45 manufacturing facilities worldwide. Multi-Color achieved sales of 923 million EUR in the fiscal year 2017.

    The two companies described the transaction as ‘value-creating’ and said it will bring together the Constantia Labels division’s food and beverage business with MCC’s wine and spirits, and home and personal care platforms. It will also widen the joint group’s geographical footprint and create long-term synergies that will benefit all parties involved.

    Alexander Baumgartner, CEO of Constantia Flexibles, said:

    ‘Following a detailed strategy review, we decided that our top-performing Labels division would be better suited with another partner, which will support its ongoing growth story. At the same time, Constantia Flexibles will participate in the future success story of Multi-Color through its shareholding. Constantia Flexibles will use proceeds from the transaction to deleverage its balance sheet and enable further acquisitions in the dynamic and consolidating flexible packaging industry. We will also focus on innovative products and services, as well as new technologies to strengthen our existing Food and Pharma divisions.’

    Nigel Vinecombe, MCC executive chairman, continued: ‘The acquisition of Constantia Labels marks a major milestone in the evolution of Multi-Color. 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. I welcome Mike Henry to the executive team and representatives from Constantia Flexibles to the Board of Directors of Multi-Color.’

    Vinecombe will remain in his position, while Mike Henry, the current executive vice president of Constantia Labels, has been named MCC CEO-elect.

    The transaction is expected to be completed in the fourth quarter of 2017, subject to regulatory approvals.

    • Company News
    • English
    • Modified 11 Feb 2019
    • Hits 21