Constantia Flexibles Holding GmbH (Vienna, Austria) announced that it has successfully completed the sale of its labels division to Multi-Color Corp. (Batavia, OH) for an enterprise value of approximately $1.3 billion (€1.15 billon). All required regulatory authorities have cleared the transaction. Constantia Flexibles received approximately €830 million ($951 million) in cash and will continue to participate in the future of Multi-Color through a 16.6% shareholding.
|An example of in-mold labeling from Multi-Color Corp.|
The transaction brings together the high-performing food and beverage business of Constantia Flexibles’ labels division with Multi-Color’s strong wine and spirits and home and personal care platforms, as well as its emerging global position in healthcare. The combined annual revenue of the two businesses will be approximately $1.7 billion. Constantia Flexibles is the world’s fourth largest producer of flexible packaging, with some 7,400 employees at 32 sites in 18 countries.
Multi-Color Corp. operates 47 state-of-the-art manufacturing facilities serving over 20 countries in regions including Latin America, Europe, the Middle East, Africa, Asia Pacific and North America. The company specializes in a variety of labeling solutions—pressure sensitive, shrink sleeve and in-mold labeling—for global brand owners.
Alexander Baumgartner, CEO of Constantia Flexibles, commented: “We would like to thank all employees of the labels division for their tremendous contributions to our group in the past and wish them a successful future as part of Multi-Color. Constantia Flexibles will use the 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 businesses.”
Bernard Gautier, a member of the Executive Board of Wendel, the majority shareholder of Constantia Flexibles, and Chairman of the Supervisory Board of Constantia Flexibles, said, “This deal provides the company with an opportunity to refocus on its core business and grow more rapidly. It also gives the company an indirect leadership position in the label industry as the largest shareholder of Multi-Color, with a 16.6% stake in its equity. Through this deal, Constantia Flexibles has actually contributed to the inception of a strong industry leader, and we look forward to supporting its ambitious long-term growth plan.”