Multi-Color Corporation announced Monday the signing of a letter of intent by Collotype International Holdings Pty. Ltd., headquartered in Adelaide, South Australia, Australia. Collotype is a pressure sensitive wine and spirits label manufacturer with a strong market position in Australia, the United States and South Africa, and a growing provider of labels in the fast moving consumer goods marketplace.
Multi-Color President and CEO Frank Gerace says, "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."
Collotype Group Managing Director Nigel Vinecombe adds, "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.
Multi-Color, a public company (Nasdaq: LABL) headquartered in Sharonville, OH, USA, is one of the largest label suppliers in North America. Its product portfolio, strongly positioned in consumer products, includes in-mold labels, heat transfer labels, cut-and-stack and pressure sensitive labels, and shrink sleeves.