Global investment firm Platinum Equity has agreed to acquire US-based label solutions provider Multi-Color Corporation in a deal valued at $2.5bn.
As per terms of the deal, Platinum Equity’s affiliate will pay $50.00 in cash for each share of Multi-Color common stock. The deal also includes $1.5bn debt of Multi-Color.
Constantia Flexibles and affiliates of Diamond Castle Partners own around 28.7% stake in Multi-Color. Both firms have separately entered into a voting and support agreement to vote its shares in favor of the deal as provided in each deal.
Platinum Equity partner Louis Samson said: “We have tremendous respect for Multi-Color Corporation, and believe that its capabilities and established position in the industry, when combined with our portfolio company WS Packaging Group, operational expertise and financial resources, will enable Multi-Color Corporation and WS Packaging Group to strengthen the value proposition for their customers.”
Based in Cincinnati of Ohio, Multi-Color offers label solutions for the customers in various segments such as home and personal care, wine and spirits, food and beverage, healthcare and specialty consumer.
The company offers a range of latest label technologies in pressure sensitive, cut and stack, wraps, aluminum, in-mold, shrink sleeve and heat transfer to the customers.
Multi-Color’s labeling capabilities comprise of decorative technologies, print technologies and pre-press technologies.
The firm provides products and services to national and international brand owners in North, Central and South America, Europe, Africa, China, Southeast Asia, Australia and New Zealand.
Multi-Color employs around 8,400 people at 71 label producing facilities across the globe.
Subject to shareholder approval, regulatory clearances and other customary closing conditions, the deal is expected to complete in the third quarter of this year.
Multi-Color Corporation executive chairman Nigel Vinecombe said: “This transaction is the culmination of our Board’s review of strategic alternatives to maximize value for our shareholders.
“As a result of this process, our Board, with the assistance of independent advisors, unanimously determined that this all-cash transaction will deliver immediate, significant and certain value to our shareholders and is in the best interest of our shareholders and our company.”