Canadian Packaging

Multi-Color Corp. to acquire Constantia Labels Division

By Canadian Packaging staff   

General Coding & Labeling Constantia Flexibles GMBH Label company acquisition Multi-Color Corporation

Purchase price to be US$1.3 billion, creating a global leader within the label sector.

CINCINNATI, Ohio—Multi-Color Corporation has announced it has signed a definitive agreement to acquire the Labels Division of Constantia Flexibles from Constantia Flexibles GmbH or approximately $1.3 billion, payable in cash and stock.

The combined annual revenues and EBITDA of the two businesses will be approximately $1.6 billion and $300 million, respectively.

The combination brings together Constantia Labels’ high performing food and beverage business with Multi-Color’s strong wine and spirit, and home and personal care platforms, and emerging global position in healthcare.

Additional growth opportunities for Multi-Color exist in home and personal care by utilizing Constantia Labels’ European operational footprint and assets. Growth opportunities for Constantia Labels exist in food and beverage and derive from Multi-Color’s U.S. operational footprint and assets. The stronger combined footprint in Asia will provide further revenue opportunities.


The strengthened global platform creates a much greater acquisition pipeline and higher potential synergies from future acquisitions, especially in Food and Beverage, the largest segment of the global labels market.

“The acquisition of Constantia Labels marks a major milestone in the evolution of Multi-Color,” says Multi-Color executive chairman Nigel Vinecombe. “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.”

As part of the transaction, Mike Henry, current executive vice-president and head of Constantia Labels, is expected to become chief executive officer-elect of Multi-Color Corporation, and Constantia Flexibles will become a 16.6% shareholder in Multi-Color.

Henry brings 17 years of experience in the labels sector, having started his career at KPMG as a chartered accountant, spent 14 years in senior management roles for Spear Labels (based in Cincinnati), and has led Constantia Labels for the past three years.

Current Multi-Color chief executive officer Vadis Rodato, is expected to retire in early 2018 after a transition period. Nigel Vinecombe will remain executive chairman.

“I welcome Mike Henry to the executive team and representatives from Constantia Flexibles to the Board of Directors of Multi-Color” Vinecombe adds.

“I am delighted to take on this new opportunity and, together with an outstanding team of employees, build on the strengths of the combined businesses to drive forward Multi-Color to further success in the global labels industry,” says Henry.

The transaction purchase price is approximately $1.3 billion and will be settled in cash and 3.4 million shares in Multi-Color stock (representing 19.9% of current stock outstanding). Multi-Color’s stock will be issued to Constantia Flexibles at a price of $75 per share. Two representatives of Constantia Flexibles will join Multi-Color’s Board of Directors, and the shares issued as consideration will be subject to customary lock-up provisions.

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

About Multi-Color Corporation
Multi-Color, headquartered near Cincinnati, Ohio, with approximately 5,500 employees, is a leader in global label solutions supporting a number of the world’s most prominent brands including leading producers of home & personal care, wine & spirits, food & beverage, healthcare and specialty consumer products. Multi-Color serves international brand owners in North, Central and South America, Europe, China, Southeast Asia, Australia, New Zealand, and South Africa with a comprehensive range of the latest label technologies in Pressure Sensitive, Glue-Applied (Cut and Stack), In-Mold, Shrink Sleeve and Heat Transfer.

About Constantia Labels
Constantia Labels is a leader in label solutions serving the food, beverage and consumer packaging goods industries. Constantia Labels has approximately 2,800 employees globally, with 23 production plants across 14 countries, with major operations across Europe, Asia and North America reported net sales of approximately $690 million (€605 million) for the financial year ending December 2016.

About Constantia Flexibles
Constantia Flexibles is the world’s fourth largest producer of flexible packaging and labels. Based on the guiding principle of ‘People, Passion, Packaging’, some 10,000 employees manufacture tailor-made packaging solutions at 55 sites in 24 countries. Many international companies and local market leaders from the food, pharma and labels industries choose the sustainable and innovative products of Constantia Flexibles.

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