Multi-Color Corporation & Collotype Labels to Form Global Label Business
The acquisition, to be paid for with a combination of cash and stock, is expected to be accretive to earnings immediately upon completion.
09/11/07 Multi-Color Corporation announced the signing of a Letter of Intent (a.k.a. Heads of Agreement) to acquire Collotype International Holdings Pty. Ltd..
Headquartered in Adelaide, South Australia, Australia, Collotype is the world's leading pressure sensitive wine and spirits label manufacturer with market leadership in Australia, the United States and South Africa and a growing provider of labels in the fast-moving consumer goods marketplace.
Multi-Color, headquartered in the Cincinnati, Ohio area, is a leading supplier of a broad range of innovative label solutions to the North American consumer products marketplace, including in-mold labels (IMLs), heat transfer labels (HTLs), cut-and-stack and pressure sensitive labels and shrink sleeves.
Multi-Color President and CEO Frank Gerace said, "This transaction will be a large step towards our strategy of building a global platform in the consumer labels business, capable of serving premium brands by leveraging complimentary technologies, innovation, talent and customer relationships. I am especially pleased to welcome Nigel Vinecombe and his management team to Multi-Color upon closing of the transaction and look forward to growing our business together."
Commenting on the deal, Collotype Group Managing Director Nigel Vinecombe added, "Collotype and Multi-Color are natural partners -- both businesses are recognized for leadership in quality, innovation, technology and services to our customers. The Collotype management team is excited about contributing to the growth of the combined group."
Upon completion of the transaction, Nigel Vinecombe will become President of Multi-Color's International Business Unit. Don Kneir will continue as President of Multi-Color's North American Business Unit.
The acquisition, to be paid for with a combination of cash and stock, is expected to be accretive to earnings immediately upon completion. Financial terms will be disclosed upon the completion of the transaction, expected within 60 days. The transaction is subject to final negotiation and execution of a definitive share purchase agreement and satisfaction of customary closing conditions. Multi-Color expects to draw down its revolving credit facility to finance the transaction.
