York Label, Omaha, NE, USA, has announced that its private equity sponsor, Diamond Castle Holdings, and the company’s management team have acquired $32 million of York Label senior and subordinated debt, and have renegotiated favorable new terms and conditions with its banking partners.
As a result of this transaction, overall debt for York Label is significantly reduced and cash flow is further improved, according to a company announcement.
Some recent examples of new investment by York Label include the acquisition of three new label presses at its York, PA, USA, facility; establishment of pharmaceutical label capacity in the US, complementing the existing capability in Canada; facility investments to improve efficiency in its Canadian business; and increased R&D spending to accelerate innovation with particular focus on graphic effects, environmental sustainability and late stage differentiation.
York Label President and CEO John McKernan says, “This equity infusion will allow us to continue investing in new technology, new capacity, new capabilities, productivity improvement and strategic acquisitions. As an organization we are committed to executing our strategy to deliver exceptional quality, service and value to our customers in a sustainable manner.”