Multi-Color Corporation (Nasdaq: LABL), of Sharonville, OH, USA, has announced the signing of a binding agreement to acquire Collotype International Holdings Pty. Ltd. for approximately $175 million plus an additional $10 million upon achieving certain financial targets. This follows the announcement of a letter of intent between the parties in November.
Collotype, with more than $130 million in annual sales, is a leading pressure sensitive wine and spirits label manufacturer and a growing provider of labels in the fast moving consumer goods marketplace in Australia. Collotype is based in Australia, and has operations in Australia, South Africa and the United States. It produces labels for eight of the top 15 global wine brands, and its major customers include Diageo, Pernod Ricard, Constellation, Foster's, Gallo, The Wine Group, Bronco, Trinchero, Distell and KWV.
Collotype shareholders and management team will receive almost 30% of their total proceeds in Multi-Color stock. The acquisition is expected to close on or about January 31.
Multi-Color President and CEO Frank Gerace says, "This acquisition is the first large step towards achieving our long range strategy of being a premier global resource of innovative label solutions to consumer product and food and beverage companies worldwide. We look forward to Nigel Vinecombe and the Collotype team becoming a vital component of Multi-Color's continued success."
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.