29/02/08 Multi-Color Corporation announced it has completed the acquisition of Collotype International Holdings Pty. Ltd. for $200 million (Australian Dollars), plus an additional $10 million (Australian Dollars) upon achieving certain financial targets.

The transaction is expected to be accretive to earnings immediately. Multi-Color estimates this acquisition will increase Earnings per Share by 22 cents to 24 cents in the first full year of operation. Pro forma results will be reported in a subsequent 8-KA filing with the SEC on or about May 14, 2008.

Established in 1903, Collotype generates over US$130 million in annual revenues and is the world's leading pressure sensitive wine and spirits label manufacturer and a growing provider of labels in the fast-moving consumer goods marketplace in Australia. Collotype is based in Adelaide, Australia, and has operations in Australia, South Africa and the United States. Collotype is known for its innovation and high quality in the wine and spirits market. Collotype produces labels for eight of the top fifteen global wine brands and its major customers include Diageo, Pernod Ricard, Constellation, Foster's, Gallo, The Wine Group, Bronco, Trinchero, Distell and KWV.

Multi-Color President and CEO Frank Gerace said, "We are pleased to announce the completion of our first international acquisition, Collotype International. Establishing a global growth platform is another large step in creating a more balanced company. This acquisition expands our customer base, increases our talent pool, and enables us to benefit from faster growing regions and markets."

Collotype's commanding presence in the global wine and spirits market complements Multi-Color's leadership in providing all label technologies to the North America consumer products and food and beverage marketplaces.

Nigel Vinecombe has assumed the position of President of Multi-Color's International Business Unit. Don Kneir will continue as President of Multi-Color's North American Business Unit.

Nigel Vinecombe stated, "Collotype's management team and employees are excited about joining a group with the strength of Multi-Color. Multi-Color is listed on NASDAQ and has access to capital markets to support the next stage of our combined global growth strategy in fast-moving consumer goods and wine & spirits. The two companies are natural partners -- together we will combine a global manufacturing footprint, label technology leadership and relationships with the largest wine, beverage and consumer products groups."

In connection with the acquisition, Multi-Color executed a five-year US$200 million credit facility with an option to increase the facility up to an additional US$50 million subject to terms of the loan documents. The facility is with Bank of America (Agent) and a syndicate of seven other lenders and gives Multi-Color the capacity to make further acquisitions and capital investments. Approximately 25% of the purchase price was paid for in Multi-Color stock. The remainder was paid in cash via borrowings under the new credit facility.