Constantia Flexibles has signed an agreement to sell its Labels division to Multi-Color Corporation for an enterprise value of approximately Euro 1.15 billion ($1.3 billion). The transaction is expected to be completed in the 4Q 2017, subject to regulatory approvals, as the company says in the press release received by Lesprom Network.
The majority of the transaction is payable in cash, while Constantia Flexibles will also receive 3.4 million shares in Multi-Color stock. On completion of the transaction, the flexible packaging company will hold 16.6% of Multi-Color, thereby becoming its largest shareholder. Two representatives of Constantia Flexibles will join Multi-Color’s Board of Directors.
This value-creating transaction will bring together Constantia Labels’ leading food and beverage business with Multi-Color’s strong wine and spirits and home & personal care platforms. It will also widen the joint Group’s geographical footprint and create long-term synergies that will benefit all parties involved.
Mike Henry, current CEO of Constantia Labels, will become CEO-elect of Multi-Color, and will work closely with the current CEO Vadis Rodato, who will retire in early 2018 after a transition period. Nigel Vinecombe will remain in his current role as Chairman of Multi-Color.
Constantia Flexibles is the world’s fourth largest producer of flexible packaging and labels.
